Thursday’s early trading saw a dip in equity benchmark indices, marking the second day in a row, due to additional withdrawals of foreign funds and negative trends in global markets. The benchmarks were also depressed by Wipro, an IT services business, and its disappointing earnings.
The IT services company Wipro saw a nearly 4% decline in revenue among Sensex companies after reporting a nearly flat consolidated net profit of Rs 2,667.3 crore for the September quarter, below street estimates. The company also projected a 3.5% decline in revenue for the current quarter due to a weak global economic outlook and an unstable business environment. Among the other significant laggards were Mahindra & Mahindra, Bajaj Finserv, Power Grid, Tata Steel, JSW Steel, and Bajaj Finance.
ITC and IndusInd Bank benefited.
Seoul, Tokyo, Shanghai, and Hong Kong were trading in negative territory in the Asian markets.
US stock markets saw a decrease on Wednesday.
The benchmark for global oil, Brent crude, fell 0.52% to USD 91.02 a barrel.
According to exchange statistics, foreign institutional investors (FIIs) sold stocks on Wednesday for a total of Rs 1,831.84 crore.
Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, stated, “Investors face various pressing concerns, including divestment by foreign institutional investors, the Israel-Palestine conflict, lacklustre corporate performance, rising US treasury yields, and an upcoming speech by Jerome Powell (Fed Chair).”
On Wednesday, the BSE benchmark fell by 551.07 points, or 0.83 percent, to close at 65,877.02. The Nifty dropped to 19,671.10, down 140.40 points, or 0.71 percent.