Domestic institutional investors (DIIs) bought shares worth a net Rs 1,480.51, while foreign portfolio investors (FPIs) sold shares worth Rs 701.93 crore yesterday, as per provisional data.
The greenback strengthened against most global currencies as investors await hints on the pace of further US monetary tightening amid sustained capital outflows, forex dealers said.
The broader NSE Nifty closed lower by 79.70 points, or 0.75 per cent, at 10,516.70, after hovering between 10,621.70 and 10,505.80. A plunge in the rupee’s value and sustained foreign fund outflows added to the gloom.
The Indian currency, one of the worst performers in the current fiscal, closed at 68.07 against the dollar, a level last seen on January 24, 2017, down 0.86 per cent from its previous close of 67.52.
Towards the fag-end of the session, both key indices Sensex and Nifty entered the negative terrain reacting to the reports that the Congress would offer support to the JD(S) to form the government in Karnataka.
Industrial output growth fell to a five-month low of 4.4 per cent in March due to a decline in capital goods production and deceleration in mining activity and power generation.
Prominent gainers that supported the upward trend included ICICI Bank, M&M, Bharti Airtel, ONGC, RIL, Kotak Bank, HUL, Axis Bank, Coal India, L&T, TCS, HDFC Bank and Infosys. This is the rupee’s second straight slide, which dealers say is mostly due to demand for the US currency.
In the Asian region, Japan’s Nikkei fell 0.65 per cent, Hong Kong’s Hang Seng shed 1.07 per cent in early trade. China’s Shanghai Composite index too was down 0.59 per cent.
Brokers said, besides continued capital outflows by foreign funds, profit-booking in recent gainers, rupee’s fall below the 66-mark against the dollar and higher global crude oil prices, hurt trading sentiments.
After trading in a narrow range during the early part of the day, the home currency drifted sharply in mid-afternoon deals to hit a fresh intra-day low of 65.51 before concluding the day at 65.49, revealing a steep loss of 29 paise.
Brokers said sustained foreign fund inflows, increased buying by domestic institutional investors (DIIs) and a mixed trend in other Asian bourses, after the Fed rate hike, influenced the market.
The rupee plunged by 23 paise to close at one-week low of 65.17 against the US currency due to concerns over widening current account deficit and a strong dollar ahead of a crucial US Federal Reserve meet.
The 30-share Sensex rallied 301.55 points, or 0.90 per cent, to 33,608.69 in opening trade. The index had lost 44.43 points in the previous session on Friday
The sentiment swing also manifested in institutional flows into equities in India with both foreign investors and domestic institutions selling and buying in two sessions each of the week, during the first four sessions for which data was available.
Bank stocks down up to 3.84 per cent; all sectoral indices, barring FMCG & consumer durables, end in red.