Fund outflows dent equities; banking stocks down

Mumbai, Oct 29: Heavy foreign fund outflows as well as selling pressure continued to subdue India's two key domestic indices during Friday's mid-afternoon trade session.

On Thursday, FIIs sold Rs 3,818.51 crore on BSE, NSE & MSEI in the capital market segment.

Initially on Friday, both the indices opened in the red, however, they were able to pare some of their from morning losses.

Globally, Asian markets continued to trade mixed amid concerns about slowing growth and rising inflation.

On the domestic front, volumes on the NSE were a little above previous day's mark.

Among sectors, Healthcare gained whereas banks lost the most.

At around 2.35 p.m., the 30-scrip sensitive index traded at 59,593.78 points, down 390.92 points or 0.65 per cent.

The Sensex opened at 59,857.33 points from its previous close of 59,984.70 points.

Besides, the NSE Nifty50 traded at 17,760.65 points, lower by 96.60 points or 0.54 per cent.

It opened at 17,833.05 points from its previous close of 17,857.25 points.

"Nifty is witnessing selling on every rise and this selling is probably from the FPI side," said Deepak Jasani, Head of Retail Research, HDFC Securities.

"Stability in global markets could halt this selling and lead to gains in the Nifty."

According to Likhita Chepa, Senior Research analyst at CapitalVia Global Research: "Domestic sentiment was influenced by mixed signals from other Asian markets."

"Our research suggests that 18,000 may act as resistance point for a short period and 17,600 an important support level in the market. If the market breaches the level of 18,000, we can expect the market to trade till the level of 18,300-18,400. There are indications of a reversal from the support level."