The benchmark equity indices lost ground for the second straight session on Thursday amid expiry of the derivatives contracts, an overall subdued global trend, and weakness in the banking and financial space in the Indian market.
The 30-share Sensex lost 382.91 points, or 1.02%, to close at 37,068.93, with stocks like HDFC, ICICI Bank, HDFC Bank, Kotak Mahindra Bank, State Bank of India, Axis Bank and Reliance Industries contributing the most to the day’s losses.
The broader Nifty ended the day at 10,948.30, down 97.80 points or 0.89%.
Market participants attributed the day’s fall to mixed global cues and the increased volatility due to expiry of the derivatives contracts.
“Volatility remained high especially in F&O counters due to unwinding and rollover of the positions, while the broader indices remained under pressure,” said Ajit Mishra, vice president — research, Religare Broking.
“In the absence of any major domestic event, global cues will continue to dictate the market trend. Indications are in favour of further consolidation in Nifty, thus traders should focus more on stock selection and trade management,” he added. Foreign investors continued to sell Indian equities with provisional numbers showing overseas investors as net sellers at ₹987 crore.
Data shows that foreign portfolio investors (FPIs) have sold shares worth nearly ₹17,000 crore in August. In July, FPIs were net sellers at ₹12,419 crore.
Elsewhere in Asia, while Nikkei and Kospi were down, Hang Seng managed to close with marginal gains.
