FPJ News Service New Delhi

Key indices Sensex and Nifty closed lower in a volatile trade on Monday due to intense selling pressure in heavyweight scrips HDFC Bank and Reliance Industries amid unabated foreign fund outflows. The 30-share BSE Sensex fell 112.16 points and settled at 73,085.94. During the day, it hit a high of 73,649.72 and a low of 72,784.54. Continuing losses for the ninth straight day, the NSE Nifty lost 5.40 points and closed at 22,119.30. FIIs offloaded equities worth Rs 4,788.29 crore on Monday, and DIIs bought equities worth Rs 8,790.70 crore.

Profit-booking hit blue chip stocks, and from the Sensex pack, Reliance Industries, Bajaj Finserv, HDFC Bank, Adani Ports, Maruti Suzuki India, Axis Bank, Hindustan Unilever, Sun Pharmaceuticals and Asian Paints were among the top losers. UltraTech Cement, Bharti Airtel, NTPC, Infosys, Bajaj Finance, Mahindra & Mahindra, Larsen & Toubro and State Bank of India were top gainers.

According to Dr V K Vijayakumar, a senior investment strategist, large cap valuations are now fair, and financials are attractive. US 10-year bond yields have declined to 4.21%. So, there is a possibility of FIIs reducing selling. The Q3 GDP growth numbers picking up from 5.6%  in Q2 to 6.2% in Q3, and suggesting above seven per cent growth in Q4 is indicative of cyclical recovery which bodes well for the stock market. The correction in the market is an opportunity for long-term investors to buy high quality stocks. Though it’s difficult to predict when the market will bottom out, this is the time to start buying without bothering about the near-term volatility.

Vinod Nair, a senior equity researcher said, “With valuations approaching oversold levels, domestic indicators suggest potential for a rebound. However, the longevity of this recovery remains uncertain, contingent on easing global trade uncertainties, which currently show limited signs of improvement.”