Stock markets update: Equity benchmark indices declined in early trade on Monday amid weak trends in Asian markets and unabated foreign fund outflows. In the early trade, the 30-share BSE Sensex fell 800.29 points to 76,580.62. Meanwhile, the Nifty also declined 218.40 points to 23,213.10.
The decline follows a better-than-expected US payrolls report released on Friday, which led to a sell-off on Wall Street and drove Treasury yields higher. The robust labor market data has added uncertainty to the US Federal Reserve’s plans for potential interest rate cuts, casting a shadow over global equity markets.
Additionally, persistent selling by foreign institutional investors (FIIs) has further dampened market sentiment in India. On Friday, FIIs net sold Indian equities worth Rs 2,254.68 crore, continuing their streak of withdrawals. However, domestic institutional investors (DIIs) provided some support by net buying shares worth Rs 3,961.92 crore during the session.
Market outlook remains cautious
Market analysts predict that Indian indices will remain under pressure in the near term, with global factors, including US monetary policy and institutional investment trends, dictating market movements. Investors are advised to stay cautious and closely monitor developments in the international and domestic arenas.
