FPI outflows keep Sensex in the red

Stock market correction continued on Friday, even as dull global cues and mixed corporate earnings hit the sentiment. The Sensex, which had lost 1,159 points on Thursday, crashed by another 678 points, or 1.13 per cent, to 59,306.93 while the Nifty50 lost 186 points, or 1.04 per cent, to 17,671.65 as investors, led by foreign portfolio investors (FPIs), dumped stocks anticipating a further decline. With Friday’s fall, Sensex has fallen 1,837 points in the last two days.

FPIs unloaded stocks worth Rs 5,142 crore during the day. Although domestic institutions bought Rs 4,342 crore worth of stocks, they couldn’t prevent another slide. “Participants will be closely eyeing the upcoming US Fed meet and auto sales numbers for cues. Indications are pointing towards further slides, so participants should maintain a cautious approach,” said Ajit Mishra, VP-research, Religare Broking Ltd.