Sensex Plummets Amid Broad Selloff in Banking and Auto Shares

The Sensex fell for the third consecutive day, dropping nearly 495 points due to a significant selloff in banking, auto, and realty shares, alongside foreign fund outflows. Key sectors like consumer durables and realty faced steep declines, while IT stocks provided some market resilience.

The benchmark Sensex fell for the third straight day, shedding nearly 495 points on Thursday to close at its lowest level in two months. This decline was largely fueled by selling in selected banking, auto, and realty shares, and exacerbated by foreign fund outflows.

Nestle experienced the largest drop among Sensex companies, falling by over 3% following a decrease in second-quarter net profit. While several sectors suffered sharp declines, IT stocks, including Tech Mahindra and Infosys, managed to hold up gains.

Economic analysts noted that weak sales forecasts for the festive period, coupled with high NPAs and sluggish credit growth, contributed to the market's downturn. Sentiment was further dampened by poor Q2 results and the continued caution among investors.

(With inputs from agencies.)