Sustained FII outflows weigh down markets

Mumbai: Equity benchmark indices Sensex and Nifty ended marginally lower on Monday in tandem with a weak trend in global markets and persistent foreign fund outflows. Also, uncertainty over an India-US trade deal weighed on investors' sentiment, analysts said.

The 30-share BSE Sensex dipped 54.30 points, or 0.06 per cent, to at 85,213.36. During the day, the benchmark declined 427.34 points, or 0.50 per cent, to 84,840.32. The 50-share NSE Nifty edged lower by 19.65 points, or 0.08 per cent, to 26,027.30.

From the Sensex firms, Mahindra & Mahindra, Maruti, Adani Ports, Bajaj Finserv, Titan, and HDFC Bank were among the major laggards. However, Hindustan Unilever, Trent, HCL Tech, Asian Paints, and Tata Steel were among the gainers. Foreign institutional investors (FIIs) offloaded equities worth Rs 1,114.22 crore on Friday, while domestic institutional investors (DIIs) bought stocks worth Rs 3,868.94 crore, according to exchange data.

"Persistent foreign fund outflows and a weak rupee have kept markets in a narrow range, with currency volatility is likely to continue until clarity emerges on the India-US trade deal," Vinod Nair, Head of Research, Geojit Investments Ltd, said. On Friday, the Sensex climbed 449.53 points, or 0.53 per cent, to settle at 85,267.66. The Nifty surged 148.40 points, or 0.57 per cent, to 26,046.95.

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