Benchmark equity indices Sensex and Nifty continued their downward trajectory on Thursday, marking a fifth consecutive day of declines. The downturn was driven by profit booking amid the monthly expiry in the derivatives segment. The 30-share BSE Sensex plunged by 617.30 points, or 0.83%, to settle at 73,885.60. During the day, it hit a low of 73,668.73 due to heavy selling in blue-chip stocks. Similarly, the NSE Nifty dropped by 216.05 points, or 0.95%, closing at 22,488.65.
Market trends and influences
The benchmark indices had previously closed at lifetime high levels on May 23, triggering profit-taking among investors. This decline comes amid growing nervousness ahead of the Lok Sabha poll results on June 4. Over the past five sessions, both Nifty and Sensex have decreased by around 2%.
Vinod Nair, Head of Research at Geojit Financial Services, noted, "The benchmark index is taking cues from the US market as treasury yields continue to climb following the stickiness of global inflation, delaying the central bank’s interest rates cut policy."
Key stock movements
In the Sensex pack, major losers included Tata Steel, Titan, Tech Mahindra, Wipro, Bajaj Finserv, Bajaj Finance, Nestle India, Tata Motors, and JSW Steel. Conversely, ICICI Bank, Axis Bank, HDFC Bank, State Bank of India, and Kotak Mahindra Bank posted gains.
Nair added, "The broader market continued the weak trend, led by profit booking, due to feeble closing of monthly expiry owing to lack of interest to hold short-term positions, as exit poll is slated in the weekend."
Global market impact
Asian markets in Seoul, Tokyo, Hong Kong, and Shanghai ended lower. In contrast, European markets were trading with gains, while US markets closed in negative territory on Wednesday.
FIIs and market data
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 5,841.84 crore on Wednesday, according to exchange data.
Upcoming events
The last phase of polling is scheduled for June 1, with the general election results to be declared on June 4.
Oil prices
Global oil benchmark Brent Crude fell by 0.41% to USD 83.19 a barrel.
Previous session recap
On Wednesday, the Sensex had declined 667.55 points, or 0.89%, to settle at 74,502.90, while the NSE Nifty dropped 183.45 points, or 0.80%, closing at 22,704.70.
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