Benchmark stock indices ended on a weak note for the sixth consecutive session as concerns over capital outflows from FIIs and high retail price inflation continued to sour the mood on Dalal Street. Concerns over retail inflation led to a sharp decline in FMCG stocks during the trading session.

The S&P BSE Sensex ended 110.64 points lower at 77,580.31 at the closing bell, while the NSE Nifty50 fell 26.35 points to 23,532.70.

However, on a more positive note, broader market indices have recovered as volatility has declined sharply.

A sharp decline in FMCG stocks amid rising inflation has also contributed to the current slowdown.

The top five losers in the Nifty50 were HUL, BPCL, Britannia, Tata Consumer Products and Nestle India.

On the other hand, the biggest gainers were Eicher Motors, Hero MotoCorp, Grasim, Kotak Mahindra Bank and HDFC Life.

Vinod Nair, Head of Research at Geojit Financial Services, said, “Today, the domestic market witnessed lackluster trading, but some stability was seen from the day’s low. The sustainability of this trend remains uncertain as FIIs continue to be on the selling side.

“But on a positive note, the degree of selling is decreasing. Asian markets also showed mixed sentiments as investors weigh the potential risk from a likely change in U.S. policy on trade barriers. However, it appears that the subdued performance of the second quarter domestic results has largely factored into the consolidation over the past 1-2 months,” he added.

“The market will expect improvement in domestic trade and economic data, in anticipation of a rebound in government spending which declined during the year due to state and national elections,” Nair noted.