Markets decline after initial rally amid sharp fall in IndusInd Bank, unabated foreign fund outflow

Mumbai: Stock markets initially rose but later declined on Friday due to a significant drop in IndusInd Bank shares and continuous foreign fund outflows. In early trading, the BSE Sensex increased by 130.56 points to reach 80,195.72. The NSE Nifty increased by 36.9 points and reached 24,436.30. Nevertheless, both indices were quickly pulled down by the selling pressure. The BSE benchmark saw a decrease of 197.47 points, trading at 79,875.03, while the Nifty experienced a drop of 89.20 points, quoting at 24,310.20.

IndusInd Bank Shares Plunge 15 pc Amid Profit Concerns

IndusInd Bank, part of the 30 Sensex pack, saw a significant 15 percent drop in its stock value due to a 40 percent decrease in its September quarter net profit to Rs 1,331 crore, primarily caused by worries about the quality of its assets. NTPC, Mahindra & Mahindra, Larsen & Toubro, Tata Steel, and JSW Steel were also among the underperformers. ITC, a leading company, saw a 3% increase in its stock value following a 1.8 pc rise in its consolidated net profit to Rs 5,054.43 crore in the second quarter of September 2024. 

During the July-September period, ITC saw a 15.62 per cent increase in its revenue from operations, reaching Rs 22,281.89 crore. Axis Bank, Asian Paints, HCL Technologies, ICICI Bank and Kotak Mahindra Bank also experienced significant gains.

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Seoul, Shanghai, and Hong Kong saw gains in Asian markets, with Tokyo experiencing a decline. Thursday saw mostly positive results in the US markets. According to exchange data, Foreign Institutional Investors (FIIs) sold equities worth Rs 5,062.45 crore on Thursday, whereas Domestic Institutional Investors (DIIs) purchased Rs 3,620.47 crore shares. 

Brent crude, the global oil benchmark, increased by 0.24 percent to reach USD 74.56 per barrel. In a lackluster transaction, the BSE index decreased by 16.82 points, or 0.02 percent, closing at 80,065.16 on Thursday. In a trade marked by volatility, the Nifty decreased by 36.10 points or 0.15 per cent to reach 24,399.40.

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