Sensex tanks 542 points dragged down by blue-chip stocks, foreign fund outflows
Mumbai, Jul 24 (PTI): Equity markets fell on Thursday, with the benchmark Sensex tumbling 542.47 points, amid profit-taking in blue-chip stocks and foreign fund outflows.
Despite a positive start, the 30-share BSE Sensex failed to carry forward the momentum and fell later in the trade. The benchmark tanked 542.47 points, or 0.66 per cent, to settle at 82,184.17. During the day, it tumbled 679.42 points, or 0.82 per cent, to 82,047.22.
As many as 2,410 stocks declined, while 1,645 advanced and 166 remained unchanged on the BSE.
The 50-share NSE Nifty dropped 157.80 points, or 0.63 per cent, to 25,062.10.
From the Sensex firms, Trent, Tech Mahindra, Bajaj Finserv, Reliance Industries, Infosys, Kotak Mahindra Bank, HCL Technologies, and NTPC were among the biggest laggards.
However, Eternal, Tata Motors, Sun Pharma, Tata Steel, and Titan were the gainers.
Infosys declined over 1 per cent amid profit-taking after its June quarter earnings announcement.
In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng settled in positive territory.
European markets were quoting in the green. The US markets ended higher on Wednesday.
"Indian equities fell sharply today (Thursday), reversing previous gains despite positive global cues. Initial optimism around the India-UK free trade agreement gave way to caution as attention shifted firmly to earnings. The IT and FMCG sectors dragged down large-cap stocks due to subdued Q1 performance. Though the Q1 earnings are broadly in line, it does not justify the premium valuation..." Vinod Nair, Head of Research, Geojit Investments Ltd, said.
India and the UK on Thursday inked a landmark free trade agreement (FTA) that will cut tariffs on British whisky, cars, and an array of items, besides boosting bilateral trade by about USD 34 billion annually.
The deal was signed by Commerce Minister Piyush Goyal and his British counterpart Jonathan Reynold in the presence of Prime Minister Narendra Modi and his British counterpart Keir Starmer.
The FTA is expected to benefit 99 per cent Indian exports from tariff and will make it easier for British firms to export whisky, cars, and other products to India, besides boosting the overall trade basket, according to Indian officials.
"Markets traded under pressure on the weekly expiry day, reversing Wednesday's gains and continuing the prevailing downtrend. After a flat start, the Nifty gradually moved lower, primarily weighed down by persistent weakness in IT majors following Infosys' results and profit booking in private banking stocks after their recent rally. As a result, the index declined by over half a per cent to close at 25,062.10," Ajit Mishra, SVP, Research, Religare Broking Ltd, said.
The BSE smallcap gauge declined 0.50 per cent and midcap index dipped 0.43 per cent.
Among BSE sectoral indices, BSE Focused IT dropped 2.27 per cent, IT (1.90 per cent), teck (1.54 per cent), FMCG (1.09 per cent) and realty (1.03 per cent).
Healthcare, auto and metal were the gainers.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,209.11 crore on Wednesday, according to exchange data. However, Domestic Institutional Investors (DIIs) bought stocks worth Rs 4,358.52 crore in the previous trade.
Global oil benchmark Brent crude jumped 1.24 per cent to USD 69.36 a barrel.
On Wednesday, the Sensex jumped 539.83 points, or 0.66 per cent, to settle at 82,726.64. The Nifty gained 159 points or 0.63 per cent to settle at 25,219.90.
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Inappropriate for MLAs seeking free IPL tickets, says D.K. Suresh
Bengaluru: Bengaluru Milk Union Ltd President D.K. Suresh on Monday said it is inappropriate for MLAs to seek free IPL tickets, adding that those interested in watching matches should pay for them personally.
Speaking to reporters near his residence in Sadashivanagar, he said, “IPL is a commercial tournament and does not represent the country. It is not right for public representatives to focus too much on such matters.”
Referring to the recent controversy during the RCB celebrations, he said, “let us find out who benefited the most from the statements made during the incident.” He also pointed out that BJP MLAs had received IPL tickets as well.
Responding to discussions about relocating the Chinnaswamy Stadium, Suresh said the government has already approved the construction of a new stadium at a location he had proposed.
“I had suggested building a stadium in Surya City and submitted a proposal for it. Bengaluru needs four stadiums in four directions to cater to its growing population and encourage youth participation in sports,” he said.
He noted that apart from Kanteerava Stadium, KSCA, and the Football Stadium, there are limited facilities in the city.
“When I was a Lok Sabha member, I had proposed allocating 100 acres in my constituency at Surya City. The land was later earmarked and the plan approved,” he added.
Suresh said he has discussed the project with Minister Zameer Ahmed Khan, Rajiv Gandhi Housing Corporation Chairman Shivalingegowda, and Anekal MLA Shivanna.
“The Cabinet has now approved the project, and a stadium will be developed on around 50–60 acres,” he said.
He further added that he has requested the Deputy Chief Minister to build another stadium at Shivarama Karanth Layout through the BDA, where 40 acres have been allocated. Plans are also being discussed to develop a well-equipped stadium in Bidadi.
Commending state government's recent bilingual policy move, Suresh said forcing children to learn three languages could affect their comprehension.
“It is a good decision to make two languages compulsory. Learning a third language should be left to the choice of students and parents,” he said.
Responding to criticism from BJP leaders, he said their tendency is to oppose every decision of the government.
“To please their central leadership, they take a pro-Hindi stance. Instead, they should advocate for the adoption of Kannada in all states,” he said.
When asked about the earlier three-language policy under Congress, he said, “the situation is different now. Today, the focus should be on quality learning. Kannada should remain the primary language, while students and parents can choose an additional language.”
