Stock Market Collapsed Due To The Sell-off Of FII

Stock market collapsed due to the sell-off of FII, Sensex fell by 889 points.

Equity benchmark Sensex fell 889 points on Friday amid a negative trend in global markets and continued selling by foreign funds.

The 30-share index closed at 57,011.74, down 889.40 points, or 1.54 percent. Similarly, the NSE Nifty closed at 16,985.20, down 263.20 points or 1.53 percent.

On the other hand, Infosys, HCL Tech, PowerGrid, and TCS were among the gainers.

S Ranganathan of LKP Securities said that the indices succumbed to the continuous selling of FIIs this month, with the IT indices being the only survivors.

The stock market collapsed due to the sell-off of FII: Market condition on Thursday.

Earlier on Thursday, the 30-share Sensex closed 113.11 points, or 0.20 percent, higher at 57,901.14 points in volatile trade.

Similarly, the Nifty of the National Stock Exchange rose 27 points, or 0.16 percent, to end at 17,248.40. Nifty also opened poorly on Friday.

However, the decline in the domestic stock markets for the last four trading sessions was halted on Thursday and the BSE Sensex closed with a gain of 113 points.

Domestic markets edged higher as global markets edged higher even after the US Federal Reserve announced a sharp end to its bond-buying program.

According to traders, a rise in the rupee’s exchange rate against the dollar also strengthened the sentiment. However, continued selling by foreign institutional investors capped the gains.

Bajaj Finance was the top gainer with a gain of 2.61 percent in Sensex shares. Apart from this, Infosys, Titan, Reliance Industries, HCL Tech, Mahindra & Mahindra, and Nestle India also gained.

On the other hand, Maruti, ICICI Bank, Bajaj Auto, Sun Pharma, IndusInd Bank, and SBI fell up to 1.51 percent.

Vinod Nair, Head of Research, Geojit Financial Services said that the domestic market closed with a slight rise.

Continued selling by Foreign Institutional Investors (FIIs) and moderation in retail activity kept the domestic market muted.

The chairman of the Federal Reserve has announced three policy rate hikes, along with sharply ending the bond-buying program by early, rather than mid-2022.

The Federal Reserve took this decision in view of the strengthening of the economy and improvement on the employment front amid rising inflation.

Ajit Mishra, vice-president (research), Religare Broking, said the market remained in an uptrend after the recent fall amid volatility.

The era of speculation and apprehension has ended with the announcement of the Federal Reserve. We believe that the performance of the global markets will be significant in the days to come.

Also, activity in the primary market is expected to remain strong. Among sectors, only the IT stock is showing strength while others have a mixed trend.

In other Asian markets, Shanghai Composite Index in China, Hong Kong’s Hang Seng, Japan’s Nikkei, and South Korea’s Kospi were among the gainers.