Market benchmark Sensex dropped over 200 points in the opening session on Thursday as incessant foreign fund outflow and coronavirus overhang weighed on global investor sentiment. The 30-share index dropped 202.44 points, or 0.51 percent, to 39,686.52, while the NSE Nifty fell 62.75 points, or 0.54 percent, to 11,615.75.
Market benchmark Sensex dropped over 200 points in the opening session
Top losers in the Sensex pack included HCL Tech, HDFC Bank, TCS, M&M, IndusInd Bank, Sun Pharma, ICICI Bank, and Reliance Industries. On the other hand, Titan, NTPC, Nestle India and Kotak Bank were trading with gains. In the previous session, the Sensex settled with a loss of 392.24 points, or 0.97 percent, at 39,888.96, and Nifty plummeted 119.40 points or 1.01 percent to end at 11,678.50.
According to analysts, the intense spread of coronavirus is pushing investors away. There is sharp foreign fund outflow led by strong dollar index, as investors reduce their exposure to emerging markets amid global uncertainty.
On a net basis, foreign institutional investors sold equities worth Rs 3,336.60 crore, while domestic institutional investors bought shares worth Rs 2,785.67 crore on Wednesday, data available with stock exchanges showed.
The rupee appreciated 2 paise to 71.63 against the US dollar
Stock exchanges in Hong Kong, Seoul, and Tokyo were trading with losses, while bourses in Shanghai were positive. Equities on Wall Street too ended on a tepid note on Wednesday. Brent crude oil futures fell 1.19 per cent to USD 52.18 per barrel. The rupee appreciated 2 paise to 71.63 against the US dollar in the morning session.
The government will release the figures of GDP for the quarter ended December. The government has been taking several steps to increase the growth rate for some time. Also, despite this, most experts estimate that the growth rate will be around 5%. He estimates that the growth rate may remain low even in the fourth quarter. He says that the impact of corona virus infection can be seen on the economy. Experts at Nomura estimate that the growth rate may fall from 4.5% to 4.3% in the fourth quarter of 2019. The RBI has also forecast a growth rate of 6 per cent for the financial year 2020-21. The growth rate during the first six months of the next financial year estimated to between 5.5-6.0. In the monetary review meeting held this month, RBI has forecast a growth rate of 5%.