Sensex, Nifty fall for 6th straight session as FMCG stocks decline sharply

Benchmark stock market indices ended on a weak note for the sixth straight session as concerns over FII outflows and high retail inflation continued to dampen the mood on Dalal Street. Concerns over retail inflation led to a sharp decline in FMCG stocks during the trading session.
The S&P BSE Sensex ended 110.64 points lower at 77,580.31 at the closing bell, while the NSE Nifty50 fell 26.35 points to 23,532.70.
However, on a brighter note, broader market indices made a recovery as volatility fell sharply.
A sharp decline in FMCG stocks amid rising inflation also contributed to today’s downturn.
The top five losers on the Nifty50 were HUL, BPCL, Britannia, Tata Consumer Products and Nestle India.
On the other hand, the top gainers were Eicher Motors, Hero MotoCorp, Grasim, Kotak Mahindra Bank and HDFC Life.
Vinod Nair, Head of Research, Geojit Financial Services, said, “Today the domestic market experienced a lacklustre trading, but some stability was observed throughout from the low of the day. The sustainability of this trend remains uncertain as FIIs continue to be on the selling side.”
“But on a positive note the degree of selling is reducing. Asian markets too displayed mixed sentiments as investors evaluate potential risk due to a likely change in the US policy with trade barriers. However, it looks like the muted performance of domestic Q2 earnings has been mostly factored in with the consolidation of the last 1-2 months,” he added.
“Market will look forward for improvement in domestic business and economy data, in anticipation of a rebound in government spending which reduced during the year due to national and state elections,” Nair noted.