Indian Stocks Fall Over 1% as Foreign Fund Outflows, Global Worries Weigh on Markets
MUMBAI — Indian equity markets closed sharply lower Friday, pressured by heavy foreign institutional investor (FII) selling and weak global cues that dampened investor sentiment.
The Sensex dropped 961 points, or 1.17%, to settle at 81,287, while the Nifty fell 317.90 points, or 1.25%, to close at 25,178.
Broader markets mirrored the weakness. The Nifty Midcap 100 declined 1.10%, the NSE Smallcap 100 slipped 1.10%, and the Nifty Next50 lost 1.30%.
Most sectoral indices ended in the red, with the exception of IT, media, and consumer durables, which showed relative resilience. Realty stocks were the biggest laggards, with the Nifty Realty index falling 2.26%, followed by Auto, down 1.86%. The Nifty Metal and FMCG indices each dropped 1.69%.
Market breadth remained negative throughout the session, with 2,300 stocks declining compared to 1,515 advancing. The Bank Nifty index fell 1.08%.
Volatility edged higher, with the India VIX hovering around 2.6%, signaling heightened caution among traders as benchmarks remained under sustained pressure.
Analysts attributed the sell-off partly to renewed geopolitical concerns. A lack of progress in U.S.-Iran nuclear talks has fueled fears of escalating tensions in the Middle East. Uncertainty surrounding artificial intelligence-related investments also continued to weigh on sentiment, despite selective buying in domestic IT stocks following steep corrections earlier this month.
The Indian rupee traded marginally weaker, slipping 0.02% to 90.98 against the U.S. dollar.
Technical analysts noted that the Nifty decisively breached the crucial 25,350 support level, sweeping through a key open-interest-heavy zone and nearly filling the gap created during the earlier U.S.-India tariff-led rally. The move signaled a shift in near-term market sentiment.
Interestingly, IT stocks offered some stability, posting modest gains even after the sector saw corrections of more than 20% in February.
Elevated volatility, geopolitical risks, and cautious positioning ahead of key macroeconomic data kept investors on the defensive. Market participants said the prevailing mood remains risk-off, with near-term direction likely to depend on global developments, foreign fund flows, and upcoming economic indicators. (Source: IANS)
