Digital Desk: Indian markets fell on October 3, 2023, tracking weak global cues and unabated foreign fund outflows. The benchmark Nifty 50 index fell 1.27% to close at 19,490.30, while the Sensex fell 1.14% to close at 65,358.19.
Foreign institutional investors (FIIs) have been net sellers of Indian equities for over a month now. In September, they sold a net of Rs 7,624 crore worth of Indian equities. The outflows have continued in October, with FIIs selling a net of Rs 1,561 crore worth of equities on October 3.
FIIs are selling Indian equities due to a number of factors, including rising US interest rates, a strong US dollar, and concerns about a global recession. The rising US interest rates are making Indian equities less attractive to foreign investors, while the strong US dollar is making it more expensive for FIIs to invest in India. Additionally, concerns about a global recession are leading FIIs to reduce their exposure to emerging markets like India.
In addition to the FII outflows, heavy selling in HDFC Bank and Reliance Industries also dragged the markets lower. HDFC Bank fell 2.2% on concerns about a slowdown in loan growth, while Reliance Industries fell 1.6% on profit-booking after recent gains.
Other sectors that saw heavy selling on October 3 included IT, auto, and pharma. The Nifty IT index fell 1.8%, the Nifty Auto index fell 1.7%, and the Nifty Pharma index fell 1.3%.
Overall, the Indian markets fell on October 3 due to a combination of factors, including weak global cues, unabated foreign fund outflows, and heavy selling in HDFC Bank and Reliance Industries.