Indian stock markets extended their losing streak to a third consecutive day on Thursday, weighed down by persistent foreign fund outflows and lacklustre global market cues. The benchmark indices remained under pressure throughout the trading session, reflecting growing investor caution.
Market Performance Highlights
The 30-share BSE Sensex closed 118 points lower at 72,987, while the broader NSE Nifty declined by 17 points to settle at 22,201. The market breadth remained negative, indicating widespread selling pressure across sectors.
Sectoral Damage Assessment
Banking and financial services stocks emerged as the biggest drag on the indices, with several major private sector banks recording significant losses. Information technology stocks also remained under pressure amid concerns over global demand and persistent foreign institutional investor (FII) selling.
Foreign Institutional Exodus Continues
Foreign portfolio investors (FPIs) remained net sellers in Indian equities, extending their selling spree that has been a major concern for market participants. The continuous outflow of foreign funds has been a key factor behind the market's recent weakness, overshadowing domestic institutional support.
Global Market Context
The negative sentiment in Indian markets mirrored the weakness in global peers, with most Asian markets closing in the red. Rising bond yields in the United States and concerns over delayed rate cuts by the Federal Reserve have made emerging markets like India less attractive to foreign investors.
Technical Outlook
Market analysts suggest that the Nifty needs to hold above the 22,150 level to prevent further downside. The immediate resistance is seen around the 22,300-22,350 zone, which the index has struggled to breach in recent sessions.
What's Next for Investors?
Market experts recommend caution in the near term, suggesting that investors focus on quality stocks with strong fundamentals. The ongoing quarterly results season and global macroeconomic developments will likely determine the market direction in the coming sessions.
While domestic institutional investors have been providing some support, their buying hasn't been sufficient to counter the FII selling pressure. Market participants will be closely watching inflation data and corporate earnings for fresh triggers.
