Markets decline in early trade on weak global trends and unabated foreign fund outflows

In the volatile and ever-changing world of stock markets, investors are always on edge, trying to navigate through the ups and downs of financial markets. On May 17, equity benchmark indices took a hit in early trade due to weak global trends and unabated foreign fund outflows. The 30-share BSE Sensex declined 185.42 points to 73,478.30, while the NSE Nifty dipped 50.35 points to 22,353.50.

Sensex Components Performance

Among the Sensex components, Axis Bank, IndusInd Bank, Nestle, Hindustan Unilever, Larsen & Toubro, and Bajaj Finserv were the major laggards of the day. On the other hand, Mahindra & Mahindra, Tata Motors, Tata Steel, and UltraTech Cement were the gainers, showing some resilience in the face of the market decline.

Global Market Trends

In Asian markets, major indices like Seoul, Tokyo, and Shanghai were quoting lower, reflecting the overall negative sentiment in the region. However, Hong Kong managed to trade in the green zone, offering some relief amidst the sea of red. Meanwhile, Wall Street ended on a negative note the previous day, adding to the bearish sentiment in the global markets.

Foreign Fund Outflows

Foreign Institutional Investors (FIIs) continued their selling spree on Thursday, offloading equities worth ₹776.49 crore according to exchange data. This unabated foreign fund outflow has been a major concern for the Indian equity markets, putting pressure on stock prices and investor sentiment.

Oil Prices

Global oil benchmark Brent crude climbed 0.25% to USD 83.48 a barrel, indicating some stability in the energy markets. Oil prices play a crucial role in the overall economic health of a country, impacting inflation, current account deficit, and overall investor confidence.

Previous Day Performance

On Thursday, the BSE benchmark had a strong performance, climbing 676.69 points or 0.93% to settle at 73,663.72. The NSE Nifty also surged 203.30 points or 0.92% to 22,403.85, showing signs of resilience amidst the ongoing market volatility.

In conclusion, the markets' decline in early trade on May 17 reflects the challenges and uncertainties faced by investors in the current economic landscape. With weak global trends and unabated foreign fund outflows putting pressure on stock prices, investors need to tread carefully and stay abreast of the latest developments to make informed investment decisions.