Equity benchmark Sensex tumbled over 800 points in early trade on Friday on heavy selling amid a negative trend in global markets and unabated foreign fund outflows.
The 30-share index was trading at 57,984.80, down 810.29 points or 1.38 per cent. Similarly, the Nifty closed at 17,291.10, down 245.15 points or 1.40 per cent.
Maruti was the top laggard in the Sensex pack, falling nearly 3 per cent, followed by Bajaj Finserv, Kotak Bank, HDFC, Bajaj Finance and Tata Steel. On the other hand, Dr Reddy’s and Sun Pharma ended in gains.
In the previous session, Sensex closed 454.10 points or 0.78 per cent higher at 58,795.09 and Nifty rose 121.20 points or 0.70 per cent at 17,536.25. Foreign institutional investors (FIIs) were net sellers in the capital market as they offloaded shares worth Rs 2,300.65 crore on Thursday, according to exchange data.
According to VK Vijayakumar, chief investment strategist at Geojit Financial Services, when the Nifty has a 6 per cent rise in a stock weighted over 10 per cent, it will trigger a strong rise in the index. This happened on Thursday, when the rise in RIL took the Nifty up 121 points.
“But this bullishness is not likely to continue and it can easily reverse when the adverse conditions for the market are strong,” he said. He noted that the new headwind is the latest version of the virus found in South Africa, Botswana and Hong Kong. “This is the seventh day in a row with continued selling by FIIs, with the dominant sentiment being negative for the market,” he added.
Elsewhere in Asia, shares in Shanghai, Hong Kong, Seoul and Tokyo fell up to 2.68 per cent in mid-session deals. Stock exchanges in the US remained largely positive in the overnight session.
Meanwhile, international oil benchmark Brent crude fell 2.02 per cent to $80.56 per barrel.