sensex today: Sensex kicks off July on tepid note, sheds 800 points, Nifty50 below 15,600

NEW DELHI: Benchmark indices opened lower on Friday, as the rupee fell below the 79 mark against the dollar, raising fears of intensified foreign outflows. Asian markets were trading mostly in the red, tracking a weak closing for Wall Street stocks overnight, as investors were anticipating a global slowdown ahead.

At 10.05 am, the BSE Sensex was trading 692 points or 1.31 per cent lower at 52,326. Nifty50 was trading at 15,567, down 213 points or 1.35 per cent.

Data showed foreign equity outflows breached the Rs 50,000 crore mark in June, taking year-to-date outflows to Rs 2,17,358 crore. A weakening rupee makes investments in domestic equities unattractive to foreign investors.

The ongoing FPI selling in Indian equities is turning out to be the highest selling spree since the global financial crisis (GFC) of 2008 with a trailing 12-month FPI cumulative selling in the secondary market of $53 billion against $28 billion during the GFC, as per provisional flows data from exchanges, said in a note.

Among Sensex stocks,

fell 2.36 per cent to Rs 1,896.70. Dr Reddy’s Labs declined 2.21 per cent to Rs 4,306.45. HDFC, , and fell over 1 per cent each.

SBI,

, L&T, , and also declined up to 1 per cent.

Gainers included , which rose 1.26 per cent to Rs 2,731.55. , ITC, TechM and edged up to 0.35 per cent higher.

V K Vijayakumar, Chief Investment Strategist at

noted that the first half of 2022 saw US indices plunging 21 per cent, which was the worst since 1970.

“This weakness has reflected declines in other markets too. But it is important to appreciate the fact that India has outperformed with Nifty correcting only around 9 per cent. With the economy showing signs of “gradual recovery despite global headwinds” (RBI), the prospects for H2 appear better for markets,” Vijayakumar said.

“Leading indicators suggest improving prospects for banking, IT, telecom and autos. Stock price movements in the near-term in July will be in anticipation of better-than-expected Q2 results in these segments. Metals stocks are likely to bottom out absorbing the poor Q1 results,” Vijayakumar said.

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