Markets Tumble as Selling Pressure Mounts
Indian equity markets witnessed a sharp downturn on Tuesday, with the BSE Sensex and NSE Nifty both declining over 1% in early trade. The sell-off was driven by sustained foreign fund outflows and weak global cues, according to market analysts.
The 30-share BSE Sensex plunged more than 700 points to trade below the 58,000 level, while the broader Nifty50 slipped below 17,300. The decline was broad-based, with losses led by banking, IT, and metal stocks.
Foreign Investors Continue to Pull Out Funds
Fresh data from the National Securities Depository Limited (NSDL) showed that foreign portfolio investors (FPIs) have sold Indian equities worth over ₹3,500 crore in the last five trading sessions. This continued selling pressure has weighed heavily on market sentiment.
According to analysts, the outflows are driven by concerns over rising interest rates in developed economies and geopolitical tensions. "The persistent selling by foreign investors is a major drag on the markets," said V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Global Cues Add to Bearish Mood
Weakness in global markets also contributed to the domestic sell-off. Asian peers traded lower, tracking overnight losses on Wall Street amid fears of aggressive rate hikes by the US Federal Reserve. The Dow Jones Industrial Average had ended over 1% lower on Monday.
Back home, volatility is expected to remain high in the near term as investors await further cues from global central banks and the progress of the monsoon season.
