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Growth concerns, fund outflows dent equities (Roundup)

IANS  |  Mumbai 

Concerns over slowing growth along with the outflow of foreign funds pulled the Indian equity market lower on Wednesday. While the S&P closed 193.65 points or 0.48 per cent lower at 39,756.81, the NSE Nifty50 was down 59.40 points or 0.50 per cent at 11,906.20.

Plunge in May automobile sales coupled with negative global cues, such as US-trade tensions, and caution ahead of key industrial and data dented investors' sentiments. But a sharp downward correction in arrested the free fall.

Sectorally, the top gainers were auto, banks, capital goods, telecom and realty indices, and the top losers metals and FMCG.

"The headline indices -- the Sensex and the Nifty -- ended lower on Wednesday amid US-trade tensions. Most Southeast Asian markets fell on Wednesday with leading the decline as escalating tensions on the US-trade front and concerns of slowing growth in China curbed risk sentiment," said Deepak Jasani, of Retail Research,

"Technically, with the Nifty correcting from the recent lower high of 12,000-mark, there is a possibility of further weakness in the coming sessions. The lower levels in the next few sessions to be watched are 11,820 and 11,800. Immediate resistance level to be watched is 11,965."

According to Vinod Nair, of Research, the market retreated the winning streak as headwinds from global markets and concerns that CPI may rise to the 7-month high in May impacted the momentum.

"A steep fall of 21 per cent in passenger vehicle sales added fuel to investors' concerns over demand and liquidity crunch with non-banking companies (NBFCs). The market will consolidate as long as there are no fresh triggers and await more clarity on how NBFC-related concerns pans out."

While the foreign institutional investors (FIIs) sold stocks worth Rs 1,050.43 crore, domestic institutional investors (DIIs) bought 15 crore stocks.

On the currency front, the Indian rupee on Tuesday strengthened by 10 paise to 69.35 against the US dollar from its previous close of 69.45.

--IANS

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, June 12 2019. 20:52 IST
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