Equity benchmark BSE Sensex on August 1 tanked over 200 points in early trade on concerns over weak core industrial growth data and sustained foreign fund outflows.
The 30-share index was trading 205.69 points or 0.55% lower at 37,275.43; and the broader Nifty fell 16.15 points or 0.44% to 11,069.25.
In the Sensex pack, Vedanta took the biggest hit, trading 2.92% lower, followed by Tech Mahindra, Yes Bank, Tata Motors and Tata steel. However, Power Grid, IndusInd Bank, ICICI Bank, Asian Paint, Maruti and HCL Tech were trading in the green.
In the previous session, Sensex gained 83.88 points or 0.22% to end at 37,481.12. The broader NSE Nifty ended 32.60 points or 0.29% up at 11,118.00.
The markets continue to witness persistent outflow of foreign funds from equities.
Foreign investors sold shares worth ₹1,497.07 crore on a net basis on July 31, as per provisional data with stock exchanges. Growth of eight core industries dropped to 0.2% in June, mainly due to contraction in oil-related sectors as well as cement production, according to official data. The government on July 31 also revised downwards the growth rate of these eight sectors for May to 4.3% from the earlier estimate of 5.1 %. Overall investor sentiment was weak after the government on July 31 released the core industries output growth numbers, which dropped to 0.2% in June, experts said.
Meanwhile, the government’s fiscal deficit touched ₹4.32 lakh crore for the June quarter, which is 61.4% of the budget estimate for 2019-20 fiscal. The U.S. Federal Reserve reduced the benchmark lending rate by 25 basis points to 2.0-2.25% on July 31 for the first time in more than a decade.
Elsewhere in Asia, Shanghai Composite Index and Hang Seng were trading lower, while Nikkei and Kospi were in the green in their respective early sessions. U.S. stocks ended on a negative note on July 31. Meanwhile, the Rupee declined by 32 paise to 69.12 against the U.S. Dollar in morning trade. The global oil benchmark Brent crude futures rose 0.70% to 65.17 per barrel.
