Sensex sags as FIIs dump stocks, rally fizzles out
Indian stock markets declined at the start of trading on Monday as investors pulled back from gains amid uncertainty about global conditions and limited momentum from domestic developments. The Sensex dropped 220 points to reach 83,718 while the Nifty fell 42 points to 25,679 by 9:25 a.m. Selling pressure affected most sectors except public sector banks.
State Bank of India, Kotak Mahindra Bank and ONGC posted gains during early trading. Maruti Suzuki, Tech Mahindra, Axis Bank and Titan Company declined. The Nifty PSU Bank index climbed 1.76 percent to lead sector performance. Metal stocks rose 0.52 percent and media shares advanced 0.39 percent. Consumer durables fell 0.83 percent as the worst performer.
Market watchers attributed the pullback to foreign institutional investors resuming sales after brief rallies. These overseas investors sold equity holdings worth 6,769 crore rupees on Friday. Domestic institutional investors bought shares valued at 7,068 crore rupees during their seventh consecutive session of net purchases. American markets finished higher on Friday, with the Nasdaq gaining 0.61 percent. Asian trading showed mixed results on Monday morning as Japan’s Nikkei jumped 2.12 percent and South Korea’s Kospi added 2.27 percent, while Chinese indexes slipped.
