Stock Market update: Sensex, Nifty fall to three-week low on fund outflows

Stock Market update

The benchmark Bombay Stock Exchange (BSE) index Sensex and the National Stock Exchange (NSE) index Nifty fell to their lowest in nearly three weeks on Wednesday as stocks favoured by overseas investors such as ICICI Bank declined, following heavy foreign sales in derivatives and cash shares in the previous session.



Foreign investors sold index futures worth Rs 2,817 crore (US $443.13 million) and cash shares worth Rs 1,571 crore on Tuesday, signalling unwinding of long positions amid global risk aversion.

Stocks favoured by overseas investors led losses. Shares of ICICI Bank fell 3.3 per cent, while Tata Motors stock lost 1.5 per cent.
Lupin, which is looking to increase its foreign investment limit, witnessed a 1.5 per cent drop in its share price.

Stock markets slumped by over 3 per cent in the previous session, posting their biggest single-day loss since the rupee crisis in 2013 as a continued slide in oil prices hit emerging markets.

INTERESTING READ: Market fall hints at investors losing patience
“We cannot rule out partial profits of 2014 moving out,” said Nirakar Pradhan, chief investment officer at Future Generali India Life Insurance.

The broader 50-issue Nifty remains susceptible to profit-taking after it gained 31.4 per cent in 2014, its best since 2009.The 30-share BSE barometer and the NSE index Nifty fell as much as 0.8 per cent each on Wednesday, marking their lowest intra-day level since December 17 and on track for their third session of losses.

The euro hit a nine-year trough as sinking oil prices and worries about the world economy drove skittish investors into the arms of safe-haven sovereign debt.

The quarterly earnings season kick-starting with Infosys’ results on January 9, the Reserve Bank of India’s interest rate decision in its next monetary policy review and the budget in February are next key triggers.