In the initial hours of trading on Monday, Indian stock markets experienced a decline as weak cues from Asian markets and continuous foreign fund outflows impacted investor sentiment. The 30-share BSE Sensex recorded a dip of 48.06 points, reaching 74,071.33, while the Nifty also saw a decline of 7 points, settling at 22,486.55 points.
Major players on the Sensex, including Tata Steel, Kotak Mahindra Bank, Tech Mahindra, HDFC Bank, Infosys, and Tata Motors, faced notable losses, contributing to the overall downward trend. On the flip side, Bajaj Finserv, UltraTech Cement, ITC, and Bajaj Finance emerged as gainers.
In the broader Asian markets, Seoul and Tokyo reported lower figures, whereas Hong Kong and Shanghai remained in positive territory. This negative trend in the Asian region mirrored the performance of US markets, which closed in the red on Friday.
Brent crude, the global oil benchmark, experienced a 0.68% decrease, reaching USD 81.52 per barrel. It’s important to note that the stock markets were closed on Friday in observance of Mahashivratri.
Foreign Institutional Investors (FIIs) made equity purchases amounting to Rs 7,304.11 crore on Thursday, as reported by exchange data.
Rupee Trades in a Tight Range: Initial Strength Neutralized by Equities
While the rupee initially exhibited strength against the US dollar on Monday, trading in a narrow range, it faced conflicting factors. Fresh foreign fund inflows provided support to the rupee, but this was offset by a negative trend in domestic equities.
Forex traders noted that the rupee showcased resilience, buoyed by a weakening dollar and decreasing crude oil prices. Starting at 82.74 against the dollar, the rupee later recovered some ground to touch 82.64 in early trade, reflecting a marginal gain of 3 paise compared to its previous close.
