Benchmarks ended lower for the third consecutive session on Friday with BSE Sensex closing down 677.77 points while Nifty 50 fell 185.60 points.
On a weekly basis, the Sensex lost 1514.69 points, or 2.49 percent, and the Nifty lost 443.25 points, or 2.44 percent. This is the largest weekly drop in eight months.
Selling over Rs 21,000 crore
The impact of continued selling of the Food Industries division and rich assessments on market sentiment. Foreign brokerages, most recently Morgan Stanley, apart from Nomura and UBS, have lowered India on excessive valuations. Foreign portfolio investors sold shares worth Rs 5,142.63 crore on Friday. For the eighth consecutive day, the FPI remained net sellers. They have offloaded shares worth Rs 21,216.84 crore since October 20.
The market widening continued in favor of the declining shares, as 1,819 shares fell in the Bahrain Bourse, 1427 shares rose, and 153 remained unchanged. Moreover, 243 shares reached the lower circle compared to 239 shares closed in the upper circle. Besides, 153 stocks touched a 52-week high and 43 stocks touched a 52-week low.
“The local market continued to sell off as energy and private banking stocks remained under pressure in the wake of lackluster global sentiment,” said Vinod Nair, head of research at Geojit Financial Services.
“European markets opened weak even as the European Central Bank decided to keep interest rates unchanged despite inflationary pressures. US futures are trading in the red after slow GDP growth and disappointing profits from tech giants. Its meeting next week will be a major factor that will drive global stocks in the coming days.
“Stock markets trended lower during the week due to selling pressure from FIIs. FIIs were net sellers at over Rs 20,000 crore for the month of October,” said Joseph Thomas, Head of Research at Emkay Wealth Management.
“Valuation risk has been a major concern for foreign investors, due to the downgrading of Indian equity markets from ‘overweight’ to ‘neutral’ by major global brokerages. Valuation risk is specifically emerging now that few sections of the markets expect growth momentum to slow in the wake of inflation. Constant “.