Indian equity benchmarks opened in negative territory on Wednesday, mirroring the bearish sentiment across Asian markets and continued foreign fund outflows. The benchmark indices extended their losing streak as global uncertainties weighed on investor confidence.
Market Performance Highlights
The 30-share BSE Sensex plunged by 456.10 points, settling at 72,943.68 in initial trading hours, reflecting a 0.62 percent decline. Similarly, the broader Nifty dropped by 107.25 points to reach 22,040.70, marking a 0.48 percent fall.
Key Sectoral Impact
Several major sectors witnessed significant selling pressure, with banking and financial stocks leading the downturn. Among the prominent losers were:
- Axis Bank
- Mahindra & Mahindra
- Tech Mahindra
- Tata Steel
- NTPC
The BSE Midcap gauge declined by 0.36 percent, while the Smallcap index managed a marginal gain of 0.10 percent, indicating selective buying interest in smaller counters.
Foreign Institutional Activity
Foreign Institutional Investors (FIIs) continued their selling spree, offloading equities worth ₹1,622.69 crore on Tuesday according to exchange data. This persistent foreign fund outflow has been a major contributor to the market's weakness, dampening investor sentiment.
Global Market Influence
The negative trend in Indian markets aligned with weak cues from other Asian markets. Major Asian peers including Seoul, Tokyo, Shanghai, and Hong Kong were trading lower, creating a ripple effect across regional markets. This global cautiousness stems from ongoing concerns about economic growth and interest rate trajectories.
Market Breadth and Trading Activity
Market breadth showed a mixed picture with 1,723 stocks advancing against 1,813 declining, while 147 remained unchanged. The cautious trading pattern suggests investors are adopting a wait-and-watch approach amid the current market volatility.
Market analysts suggest that the combination of foreign fund outflows and weak global cues continues to create headwinds for Indian equities, though domestic institutional support has helped cushion some of the declines.
