Why is the Sensex Plummeting? Insights into Recent Market Trends

Market Overview

Mumbai: The Sensex, India's benchmark stock index, experienced a decline of 367 points on Friday, marking its third consecutive day of losses. This downturn is attributed to foreign fund withdrawals and a lack of significant domestic catalysts.

The 30-share BSE Sensex fell by 367.25 points, or 0.43%, closing at 85,041.45 amid low trading volumes. At one point during the day, it dropped by 470.88 points, reaching a low of 84,937.82.

Similarly, the 50-share NSE Nifty decreased by 99.80 points, or 0.38%, settling at 26,042.30, also reflecting a second day of decline.

Among the 30 companies listed on the Sensex, notable laggards included Bajaj Finance, Asian Paints, HCL Tech, Tata Consultancy Services, Eternal, and Sun Pharma.

Conversely, Titan, NTPC, Axis Bank, UltraTech Cement, Reliance Industries, and Hindustan Unilever saw gains.

In the Asian markets, South Korea's Kospi, Japan's Nikkei 225, and Shanghai's SSE Composite index ended positively, while Hong Kong's markets were closed.

European stock markets were also closed on Friday, and US markets had been closed the previous Thursday for Christmas.

Data from exchanges indicated that Foreign Institutional Investors (FIIs) sold equities worth Rs 1,721.26 crore on Wednesday, while Domestic Institutional Investors (DIIs) purchased stocks worth Rs 2,381.34 crore.

Brent crude oil, a global benchmark, increased by 0.31% to reach USD 62.43 per barrel.

On the previous day, the Sensex had decreased by 116.14 points, or 0.14%, closing at 85,408.70, while the Nifty fell by 35.05 points, or 0.13%, to 26,142.10. The domestic stock markets were closed on Thursday for Christmas.