Benchmark Equity Indices Plunge for Fifth Consecutive Day amid Global Weakness and Foreign Fund Outflows
The stock market took a hit on May 30 as benchmark equity indices continued to fall for the fifth consecutive day. The BSE Sensex dropped 315.53 points to 74,187.37, while the NSE Nifty tanked 102.60 points to 22,602.10. This decline was in line with weak global trends and unabated foreign fund outflows.
Among the Sensex firms, Tata Steel, JSW Steel, Power Grid, Titan, Nestle India, and Bajaj Finserv were the biggest laggards, while Axis Bank, State Bank of India, Kotak Mahindra Bank, ICICI Bank, IndusInd Bank, and HDFC Bank were among the gainers. In Asian markets, Seoul, Tokyo, Hong Kong, and Shanghai were also quoting lower.
According to V. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, equity markets are expected to see heightened volatility on June 3 and 4 due to the upcoming general elections. The last phase of polling is scheduled for June 1, with results set to be declared on June 4.
Vijayakumar also highlighted concerns about the spike in U.S. bond yields, which could trigger further foreign institutional investor (FII) selling and depress prices of large-caps. Additionally, global oil benchmark Brent crude went lower to $83.55 a barrel.
On May 29, the BSE Sensex had declined 667.55 points to settle at 74,502.90, while the NSE Nifty dropped 183.45 points to close at 22,704.70. The ongoing market volatility and external factors continue to impact investor sentiment, making it a challenging time for traders and investors alike.
