Indian Markets Decline Over 1% as Global Concerns Impact Investor Confidence
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Mumbai, Dec 13 (NationPress) The Indian benchmark indices, Sensex and Nifty, experienced a decline of over 1 percent on Friday. At approximately 10:51 a.m., the Sensex decreased by 1,017.03 points or 1.25 percent, reaching 80,272.93, while the Nifty fell by 306.80 points or 1.25 percent, settling at 24,241.90.
The overall market sentiment remained negative. On the National Stock Exchange (NSE), 340 stocks were in the positive zone, whereas 2,047 stocks were in the negative.
The market turmoil was fueled by significant selling from Foreign Institutional Investors (FIIs), rising US bond yields, and ongoing conflicts in the Middle East. Additionally, the upcoming Federal Reserve decision on interest rates on December 18 has heightened concerns among investors.
On December 12, FIIs sold shares valued at Rs 3,560.01 crore in the Indian market, while domestic institutional investors acquired shares worth Rs 2,646.65 crore on the same day.
Market analysts noted, "In the immediate term, the market faces both challenges and opportunities. The challenge stems from the renewed selling by FIIs, who offloaded stocks worth Rs 3,560 crore yesterday. Given the elevated valuations in India, FIIs are likely to continue selling at each market rise."
They further added, "The selling has been lucrative for FIIs due to the appreciation of the dollar following the US elections. However, a potential positive factor for the market could be the declining inflation."
Within the Sensex constituents, Tata Steel, JSW Steel, IndusInd Bank, Axis Bank, Bajaj Finserv, SBI, M&M, and Bajaj Finance were among the top losers.
In the broader market overview, Nifty Bank dropped 839.65 points or 1.58 percent to 52,376.80, the Nifty Midcap 100 index fell by 938.85 points or 1.59 percent to 58,082.85, and the Nifty Smallcap 100 index decreased by 391.85 points or 2.01 percent to 19,074.70.
Sector-wise, significant selling pressure was observed in the Nifty PSU Bank, metal, realty, auto, IT, pharma, and FMCG sectors.
