Benchmark indices extended their downward trajectory on Thursday, closing at their lowest points in almost two months due to disappointing earnings and ongoing selling by foreign portfolio investors (FPIs), which dampened investor sentiment.
After posting dismal profits for the September quarter, Bajaj Auto saw a 13% decline, making it the biggest loss on the Nifty. The Nifty finished the day at 24,749.85 points, down 221.45 points, or 0.9%. To end at 81,006.61, the Sensex also dropped 494.75 points, or 0.6%.
According to provisional statistics, FPIs sold shares worth Rs 7,421.40 crore on Thursday, marking the 13th straight session of selling in India. Conversely, on Thursday, shares worth Rs 4,979.83 crore were purchased by domestic institutional investors or DIIs.
FPI withdrawals have increased to $8.5 billion (Rs 71,393 crore) so far in October, more than the Covid pandemic sell-off in March 2020. This is the largest monthly outflow amount ever recorded. To mitigate the effects of this sell-off, DIIs have purchased shares valued at Rs 68,961 crore.
The BSE Midcap and Smallcap indices declined 1.7% and 1.4%, respectively. With the exception of Nifty IT, all sectoral indexes saw widespread selling, which resulted in a lower closing price on the NSE.
The global brokerage business stated that whereas China’s economy still faces structural difficulties, India has three disadvantages: historically high valuation multiples, high expectations for earnings growth, and slowing GDP growth.
