Sensex, Nifty start on weak note amid sustained FII outflow

Equity benchmarks Sensex and Nifty opened on a choppy note on Friday, July 2, 2021 amid sustained foreign fund outflow and a mixed trend in Asian peers.

The 30-share BSE index started on a slightly positive note, but soon turned negative to trade 46.89 points or 0.09 per cent lower at 52,271.71 in early deals.

Similarly, the broader NSE Nifty inched 9.90 points or 0.06 per cent down to 15,670.10.

TCS was the top loser in the Sensex pack, shedding over 1 per cent, followed by Infosys, Tech Mahindra, HDFC Bank, HCL Tech, PowerGrid, Tata Steel and HDFC.

On the other hand, ICICI Bank, M&M, Reliance Industries and Titan were among the gainers.

In the previous session, the 30-share index Sensex ended 164.11 points or 0.31 per cent lower at 52,318.60, and Nifty inched 41.50 points or 0.26 per cent down to 15,680.

Foreign institutional investors (FIIs) were net sellers in the capital market as they offloaded shares worth ₹1,245.29 crore on Thursday, as per provisional exchange data.

According to V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, sustained FII selling and high valuations are the major reasons for the weakness in the market now.

“It is normal and rational for FIIs to sell and book profits at the present elevated valuations. High-net-worth individuals (HNIs) also might be tempted to partially book profits,” he noted.

Elsewhere in Asia, bourses in Shanghai and Hong Kong were in the red in mid-session deals, while Seoul and Tokyo were trading with gains.

Equities on Wall Street largely ended on a positive note in the overnight session.

Meanwhile, international oil benchmark Brent crude was quoting flat at USD 75.84 per barrel.