Benchmarks fall for third day on FPI outflows; IT and auto stocks drag

Markets closed lower for the third consecutive session on Tuesday with the benchmark Sensex sliding nearly 314 points due to selling in information technology (IT) and auto shares as foreign fund outflows dampened investor sentiment. In a volatile trade, the 30-share BSE Sensex dropped 313.70 points or 0.37 per cent to settle at 84,587.01 with 24 of its constituents closing lower and six with gains. During the day, it fell by 363.98 points or 0.42 per cent to 84,536.73.

 

The 50-share NSE Nifty declined 74.70 points or 0.29 per cent to 25,884.80. Nifty has dropped 307 points or over 1 per cent in three sessions since Friday to slip below the 26,000 level while Sensex has shed 1,045 points or 1.2 per cent during the period.

 

Among Sensex stocks, Tata Motors Passenger Vehicles, Trent, Infosys, Power Grid, HDFC Bank, HCLTech, Kotak Mahindra Bank, ICICI Bank, and Bajaj Finance were the major laggards.

 

However, Bharat Electronics, State Bank of India, Tata Steel, Eternal, Bharti Airtel, and Reliance Industries were the gainers.

 

Foreign institutional investors (FIIs) offloaded equities worth ₹4,171.75 crore on Monday, according to exchange data. Domestic institutional investors (DIIs), however, bought stocks worth ₹4,512.87 crore in the previous trade. 

 

“The domestic market witnessed sharp volatility on monthly expiry day, driven by a weakening rupee and continued FII outflows. Caution prevailed as investors awaited clarity on a possible rate cut in the upcoming FOMC meeting and progress on the Indo-US trade deal, despite some improving signals,” Vinod Nair, Head of Research, Geojit Investments Limited, said.

 

Broader markets were positive with the BSE smallcap gauge rising by 0.20 per cent and midcap index by 0.19 per cent.

 

Among sectoral indices, IT dropped 0.75 per cent, BSE Focused IT (0.64 per cent), consumer durables (0.53 per cent), teck (0.39 per cent), energy (0.32 per cent), auto (0.25 per cent) and utilities (0.25 per cent).

 

Realty, commodities, healthcare, telecommunication, capital goods and metal were the gainers.

 

In Asian markets, South Korea’s Kospi, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index settled in positive territory.

 

Markets in Europe were trading on a mixed note. US markets ended significantly higher on Monday.

 

Brent crude, the global oil benchmark, dipped 0.69 per cent to $ 62.93 per barrel.

 

On Monday, the Sensex declined by 331.21 points or 0.39 per cent to settle at 84,900.71. The Nifty fell by 108.65 points or 0.42 per cent to 25,959.50. Press Trust of India

 

Gold hits highest in one-week on Fed’s dovish policy stance 

 

Gold extended gains on Tuesday to hit its highest in more than a week, brushing off a firm dollar, after dovish comments from Federal Reserve policymakers revived prospects of a US rate cut in December.

 

Spot gold rose 0.1 per cent to $4,141.49 per ounce by 0631 GMT, the highest since November 14, building on a 1.8 per cent advance on Monday. US gold futures for December delivery were 1.1 per cent higher at $4,139.10 per ounce.

 

“(Gold is primarily being) driven by expectations of a rate cut... in the last two weeks and since expectations shot up (rapidly), it caused gold prices to recover in the short term,” OANDA senior market analyst Kelvin Wong said. 

 

Gold climbs to ₹1.28 lakh/10g

 

Gold prices clim­bed ₹3,500 to ₹1,28,900 per 10 grams in the nati­onal capital on Tuesday amid fresh buying by local jewellers and retailers for the wedding festivities, acco­rding to the All India Sarafa Association. Silver pri­ces also witnessed buying interest. The white metal soa­red by ₹5,800 to ₹1,60,800 per kilogram (inclusive of all taxes). Agencies

 

Oil prices drop 2% amid report of Russia-Ukraine peace deal 

 

Oil prices extended an earlier decline on Tuesday, dropping by about 2 per cent, after news reports cited a US official saying that Ukraine had agreed to a peace deal.

 

Brent futures were down $1.22, or 1.9 per cent, at $62.15 a barrel at 1417 GMT. West Texas Intermediate (WTI) crude was down $1.21, or 2.1 per cent, to $57.63.

 

ABC News and CBS News reported that a US official said Ukraine had agreed on the terms of a potential peace deal. Ukraine’s President 

 

Volodymyr Zelenskyy said talks on a peace plan are continuing with the US. Russia’s position on the plan was unclear.Deutsche Bank sees a 2026 crude oil surplus of at least 2 million barrels per day and no clear path back to deficits even by 2027, the bank said in a note on Monday. “The path forward into 2026 remains a bearish one,” analyst Michael Hsueh said.

 

Oil markets found some  support from increasing expectations the US Federal Reserve will cut interest rates at its December 9-10 policy meeting, with Fed members indicating their support for a cut. Reuters