Stock Market Plunges for Fifth Consecutive Day amid Weak Global Trends and Foreign Fund Outflows
The stock market took a hit on May 30 as benchmark equity indices plunged for the fifth consecutive day, following weak global trends and continuous foreign fund outflows. The 30-share BSE Sensex dropped 315.53 points to 74,187.37, while the NSE Nifty tanked 102.60 points to 22,602.10.
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 trading lower, mirroring the negative sentiment. Wall Street ended in the red on May 30 as well. Foreign Institutional Investors (FIIs) offloaded equities worth ₹5,841.84 crore on the same day, according to exchange data.
Chief Investment Strategist at Geojit Financial Services, V. K. Vijayakumar, warned of heightened volatility in the equity markets on June 3 and 4, especially with the upcoming general election results on June 4. He advised that long-term investors could benefit from the current market conditions, despite the short-term aberration.
Furthermore, concerns were raised about the spike in U.S. bond yields, which pushed the 10-year yield above 4.6%, potentially triggering further FII selling and depressing large-cap prices. Additionally, global oil benchmark Brent crude dipped slightly to $83.55 a barrel.
On May 29, the BSE Sensex had already declined by 667.55 points, while the NSE Nifty dropped by 183.45 points, indicating a turbulent period for the stock market. Investors are advised to stay cautious and monitor the market closely in the coming days.
