After initial gains, the equity indices succumbed to selling pressures —mostly from foreign portfolio investors (FPIs) — on Tuesday and ended with 1% loss. The Sensex fell 820.97 points, or 1.03%, to 78,675.18, while the broader Nifty plunged 257.85 points, or 1.07%, to 23,883.45. The Sensex records its lowest closing level in three months while the Nifty slumped to its four-month low.
“Nifty fell for the fourth consecutive session on Tuesday amid weak buying interest, which failed to offset FPI sales,” said Deepak Jasani, head of retail research at HDFC Securities. The indices are now down up to 9% from their record high levels seen in late September.
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The broader BSE smallcap index underperformed the benchmarks with a 1.26% decline while the BSE midcap recorded a 0.98% fall.
The banking sector, which had recently supported the market, led the decline on Tuesday, amplifying the bearish sentiment. This drop dragged the Nifty back to the last week’s lows, marking the first close below 23,900 since June. The BSE Bankex declined 855.99 points, or 1.45%, while the Bank Nifty fell 718.95 points, or 1.39%.
“With broad-based selling in play, the 23,800-level emerges as the next crucial support to watch out for in coming sessions,” said Rajesh Bhosale, equity technical analyst at Angel One.
Power, utilities and capital goods were the top sectoral losers, each falling by more than 2%. The IT and realty sectors bucked the trend with marginal gains.
Continuing their selling spree, FPIs net sold equities worth Rs 3,024.31 crore on Tuesday while domestic institutional investors (DIIs) bought shares worth Rs 1,854.46 crore, according to provisional data from the exchanges. So far in November, FPIs have been net sellers to the tune of Rs 22,592 crore while DIIs net bought shares worth Rs 17,895 crore.
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For every advance, there were two declines on the BSE. Out of the 30 Sensex stocks, only five turned positive, and among 50 Nifty stocks, four gave positive returns on Tuesday.
The broad-based selling has resulted in investor wealth erosion of Rs 5.3 lakh crore,
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