Markets fall in early trading amid unabated outflows of foreign funds

Stock markets fell in early trade on Tuesday amid steady outflows of foreign funds and cautious investor sentiment ahead of the US presidential election and the Federal Reserve’s interest rate decision.

The BSE Sensex fell 326.58 points to 78,455.66 in early trade. The NSE Nifty was down 86.7 points at 23,908.65.

Of the 30-share Sensex pack, Adani Ports, ITC, Reliance Industries, HDFC Bank, Power Grid and Hindustan Unilever were the laggards.

JSW Steel, Tata Steel, IndusInd Bank, Tata Motors, Maruti and Sun Pharma were among the winners.

Foreign institutional investors (FIIs) offloaded shares worth Rs 4,329.79 crore on Monday, according to exchange data.

In Asian markets, Tokyo, Shanghai and Hong Kong traded in positive territory, while Seoul traded lower.

US markets ended Monday lower.

“Investors globally are bracing for increased market volatility as the US heads into a closely contested presidential election…” said Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.

Global benchmark Brent crude rose 0.12 percent to $75.17 a barrel.

Investors remain cautious ahead of the US presidential election and the US Federal Reserve’s upcoming interest rate decision later this week, said Vikas Jain, head of research at Reliance Securities.

BSE’s benchmark index fell 941.88 points, or 1.18%, to 78,782.24 on Monday, its lowest closing level since August 6.