Stock markets decline in early trade tracking weak global peers, fresh foreign fund outflows

Mumbai: Benchmark indices Sensex and Nifty drifted lower in early trade on Friday tracking a weak trend in global markets and fresh foreign fund outflows.

The 30-share BSE Sensex dropped 364.62 points to 81,883.99 during initial trade. The 50-share NSE Nifty declined 117.15 points to 25,379.40.

From the Sensex pack, Maruti, Bharti Airtel, Hindustan Unilever, Mahindra & Mahindra, Kotak Mahindra Bank and UltraTech Cement were among the major laggards.

Infosys, Tech Mahindra, HCL Tech, and Eternal were among the gainers.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,465.99 crore on Thursday, according to exchange data. Domestic Institutional Investors (DIIs), however, bought stocks worth Rs 5,031.57 crore.

In Asian markets, South Korea's Kospi, Japan's Nikkei 225 and Shanghai's SSE Composite index quoted lower, while Hong Kong's Hang Seng index traded in positive territory.

The US market ended mostly lower on Thursday.

"The recent US-Iran negotiations over Iran's nuclear programme concluded without a breakthrough, heightening concerns over the possibility of a US strike and the risk of a broader Middle East conflict.

"Amid rising uncertainty over the next US course of action regarding Iran, and in the absence of fresh domestic catalysts, investor participation is likely to remain cautious and selective," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.

Brent Crude, the global oil benchmark, dipped 0.07 per cent to $70.70 per barrel.

On Thursday, the Sensex dipped marginally by 27.46 points, or 0.03 per cent, to settle at 82,248.61. The Nifty eked out a marginal gain of 14.05 points or 0.06 per cent to end at 25,496.55.