Sensex, Nifty decline in early trade; HDFC bank drags

New Delhi: In the beginning of trading on Tuesday, both Sensex and Nifty dropped due to the negative performance of top stock HDFC Bank and new outflows of foreign funds. Mixed trends from global markets also did not provide guidance for domestic equities. In the beginning of the trading session, the 30-share BSE Sensex fell by 134.27 points to reach 79,514.65. The NSE Nifty decreased by 38.65 points to 24,308.35.

HDFC Bank, Tata Motors, Asian Paints, Bajaj Finance, Power Grid, and Hindustan Unilever were among the top underperformers among the 30 Sensex firms. Bharti Airtel, Sun Pharma, Tata Consultancy Services, and Axis Bank were among the companies that experienced gains. During early trade on Monday, nine out of ten Adani group companies recovered after a sharp decline in intra-day trading.

Seoul and Shanghai were trading down in Asian markets, while Tokyo and Hong Kong were trading up. Monday saw the US markets close with a combination of positive and negative results. According to exchange data, Foreign Institutional Investors (FIIs) resumed selling on Monday by selling equities worth Rs 4,680.51 crore after taking a break for one day. Official data released on Monday showed that retail inflation decreased to 3.54 per cent in July, marking a five-year low due to lower food prices and base effect.

The market's decision to ignore the Hindenburg report carries importance. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated that the market, which has been surmounting various challenges, has also successfully overcome this Hindenburg wall, boosting the confidence of retail investors and DIIs who have ample funds.

He stated that the decrease in CPI inflation to 3.54 per cent in July is a positive development.

According to official data released on Monday, India's industrial production dropped to 4.2 per cent in June 2024, marking a five-month low, primarily attributed to the weak performance of the manufacturing sector, while the power and mining sectors maintained strong performance. Brent crude, the worldwide oil benchmark, dropped by 0.90 percent to reach USD 81.56 per barrel.

On Monday, the BSE index closed down by 0.07 per cent at 79,648.92, a decrease of 56.99 points. The Nifty fell by 20.50 points, representing 0.08 percent, to reach 24,347.