Sensex, Nifty Drop After 3-Day Rally: Global stocks declined as Emerging Markets face FII Outflows, Mixed Q3 Results and Fears of Trump Tariff Cut.
Highlights of Market Performance:
Indian stock markets came under correction on Friday, reversing a day-up move. Foreign portfolio investors&rsquo; selling streak, mixed Q3 earnings and global risk-off due to Donald Trump&rsquo;s becoming the 47th President of the United States of America pulled down indices.
Key Indices:
<ul>
<li style="text-align: justify;">BSE Sensex: Closed at 76, 263.29 lower by 779.53 points, down 1%</li>
<li style="text-align: justify;">NSE Nifty: Closed at 23,100.35 down by 211.45 points (-0.90%).</li>
</ul>
Key Stocks Affected:
While IT and banking emerged as the major indexes&rsquo; biggest losers, only Reliance Industries, ITC and L&amp;T offered firmer ground amongst the companies with the highest weightage in the BSE Sensex.
<img src="https://currentnews.news/admin/storage/news/IzaRoS4ePEBPWPJ0v1ATbTQac8wdLQ6lDpt5NxUg.png" alt="Stock Market Drop | Current News" width="820" height="450">
Factors Behind the Decline:
1) Continued FII selling spree
<ul>
<li>Foreign Institutional Investors (FIIs) sold ₹4,341.95 crore of Indian equities on Thursday.</li>
<li>The trend is discouraging; there has been consistent capital flight which has worsened the market risks.</li>
</ul>
2)&nbsp; Mixed Q3 Earnings
<ul>
<li style="text-align: justify;">Infosys: Stock was down 6% and it followed the ADR which has experienced a similar slide on the NYSE after revenue growth guidance was slashed despite healthy Q3 figures.</li>
<li style="text-align: justify;">Axis Bank: It fell after some brokerages cut down their target price based on the disappointing performance of the company&rsquo;s December quarter.</li>
<li style="text-align: justify;">Other financial stocks also declined, although there appeared to be more sell climax witnessed based on shareholding pattern changes in stocks like HDFC Bank and ICICI Bank.</li>
</ul>
Ajit Mishra, SVP of Research at Religare Broking Ltd., said:
This is a harsh climate to be in for equities in which both low earnings perfume and aggressive FII selling pressure are presenting themselves. Despite some of the &lsquo;blue-chip names&rsquo; cushions such as Reliance and ITC, the Information Technology and Banking sectors continue to drag.
<h3>Global Concerns Add to the Pressure</h3>
1) Donald Trump&rsquo;s Swearing-in and Tariff Speculations:
<ul>
<li style="text-align: justify;">Again, investors across the world are wary as Trump prepares to take the Oval Office given the perceived protectionism that could be accorded to global trade.</li>
<li style="text-align: justify;">Fears regarding the trade relations between the US and India also added a greater level of negativity into the equation.</li>
</ul>
2) Global Market Trends:
<ul>
<li style="text-align: justify;">Failure in the global equity markets coupled with swings in crude oil prices contributed to negative sentiments at home grounds in the domestic markets.</li>
<li style="text-align: justify;">The European markets were down, the Asian markets closed a mixed bunch as the number and severity of geopolitical and economic flashpoints rose.</li>
</ul>
Market Sector Performance
1) IT Stocks: Infosys and Wipro were the loudest to go down as a consequence of their weaker Q4 forecast and concerns over global demand stood high.
2) Banking: A string of &ldquo;disappointing&rdquo; earnings for Axis Bank and intense selling by foreign institutional investors led to a drop in the bank&rsquo;s share price.
3) Energy: Reliance Industries remain robust and well supported by Q3 performance and a positive outlook for O2C and retail segments.
Market Reaction:
The selloff continued apace, but mixed fearless defensive was shown by Rel and ITC despite the decline and stabilized the indices. The company has of late posted its Q3 numbers which showed healthy growth in the group&rsquo;s retail business as well as digital services to ease some concerns.
Outlook:
Many analysts recommend markets could stay uncertain for relatively near future, owing to global situations and corporate earnings in the country. It has therefore been suggested that the investors adhere to value investing and keep a sharp eye on foreign signals.

Markets fall after a 3-day rally. Sensex plunges 779 points; Nifty drops 211 points. FII outflows, mixed Q3 earnings, and global concerns weigh on sentiment.

Sensex & Nifty Drop After 3 Day Rally