Indian shares fell for a second straight session on Wednesday, as foreign funds shifted money to China and marquee companies’ results disappointed investors.

The Nifty 50 index closed down 0.34% to 24,971.3 points, while the S&P BSE Sensex fell 0.39% to 81,501.36.

The Nifty 50 has declined about 5% from a record high hit in the last week of September - when China unveiled its most aggressive measures since the pandemic.

Beijing’s stimulus has shifted the focus of global fund managers to China and foreign investors have pulled out $7.9 billion from Indian stocks so far in October, the highest since March 2020.

That, coupled with a “not-so-encouraging” start to the September-quarter earnings is weighing on sentiment, Ajit Mishra, senior vice president of research at Religare Broking said.

The more domestically-focussed small-caps closed the session flat, while mid-caps shed 0.2%.

Indian shares drop as prospect of delayed domestic rate cuts dulls sentiment

Hyundai Motor India’s record $3.3 billion IPO was subscribed 37% as of 3:30 p.m. IST on its second day of share sale.

Heavyweight Reliance Industries’ disappointing results weighed in the previous session, but the oil-focussed conglomerate rebounded 0.8% on the day.

Oil and gas stocks rose 0.23% as crude prices stabilised from a recent slump.

IT major Tata Consultancy Services slipped 0.5%, taking its losses since its weak second-quarter earnings last Thursday to more than 3%.

Two-wheeler maker Bajaj Auto ended 0.8% higher ahead of its quarterly results.

Top Nifty firms like Nestle India, Infosys, Wipro and Axis Bank are due to report their results later this week.

Cochin Shipyard dropped 5% after it said the Indian government will sell a 5% stake at a discount.