Mumbai, Jan 30: Benchmark equity indices Sensex and Nifty tumbled in early trade on Friday after a three-day rally, dragged by IT stocks and caution ahead of the Budget presentation on February 1.
Fresh foreign fund outflows and weak trends in global equities also added to markets’ weakness during initial trading.
The 30-share BSE Sensex tumbled 619.06 points to 81,947.31 in opening trade. The 50-share NSE Nifty dropped 171.35 points to 25,247.55.
From the 30-Sensex firms, Tata Steel, HCL Tech, Infosys, Tata Consultancy Services, NTPC and Tech Mahindra were among the biggest laggards.
Maruti, ITC, Asian Paints and InterGlobe Aviation were among the gainers.
“As we near the Budget Day there are headwinds and tailwinds for the market. Geopolitical issues continue to plague global trade with continuous threats of tariff weaponisation by Trump. The spike in Brent crude to near USD 70 is a headwind for Indian macros in general and industries that use oil as inputs, in particular.
“However, these headwinds are likely to be countered by the positive message from the Economic Survey that projects GDP growth of 6.8 to 7.2 per cent growth in FY27,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
The steady decline in FPI outflows during the last two days indicate a possible change in FPI strategy, he added.
India’s economy is projected to grow by 6.8-7.2 per cent in the fiscal year starting April, the government’s pre-Budget Economic Survey said on Thursday, reaffirming the country’s status as the world’s fastest-growing major economy despite trade risks and global volatility clouding the outlook.
In Asian markets, South Korea’s Kospi traded higher, while Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index quoted lower.
US markets ended mostly lower on Thursday.
Brent crude, the global oil benchmark, dropped 1.39 per cent to USD 69.73 per barrel.
Foreign institutional investors offloaded equities worth Rs 393.97 crore on Thursday after a day’s breather, according to exchange data. Domestic Institutional Investors (DIIs) however, bought stocks worth Rs 2,638.76 crore.
On Thursday, the Sensex climbed 221.69 points or 0.27 per cent to settle at 82,566.37. The Nifty edged higher by 76.15 points or 0.30 per cent to end at 25,418.90. (PTI)
