Indian equity benchmarks opened on a negative note Thursday, extending their losing streak as investors opted to book profits amid persistent selling pressure from foreign funds. The market sentiment remained cautious as several key sectors witnessed significant declines.
Market Opening Bell Rings Bearish
The 30-share BSE Sensex plunged 345.53 points to settle at 72,404.91 in early trade, while the broader NSE Nifty dropped 118.65 points to 21,925.50. This marked the third consecutive session of losses for both indices, reflecting growing investor anxiety.
Foreign Funds Continue Exit Strategy
Foreign Institutional Investors (FIIs) maintained their selling momentum, offloading equities worth ₹4,595.06 crore on Wednesday according to exchange data. This persistent foreign fund outflow has been a major drag on market performance, creating headwinds for the bullish sentiment.
Sectoral Performance: Mixed Bag with Heavy Losses
The market breadth remained weak with several key sectors bearing the brunt of selling pressure:
- IT Stocks: Major technology companies faced significant selling amid global uncertainty
- Financial Services: Banking and financial stocks contributed substantially to the decline
- Oil & Gas: Energy companies witnessed profit-booking after recent gains
- Metal Counters: Commodity stocks remained under pressure
Asian Markets Set the Tone
The negative opening in Indian markets mirrored the trend across Asian peers. Japan's Nikkei 225 declined by 0.94%, while South Korea's Kospi dropped 1.10%. Hong Kong's Hang Seng index also traded lower, falling 0.61% in early sessions.
Expert Analysis: What's Driving the Sell-Off?
Market analysts attribute the current correction to multiple factors creating a perfect storm for profit-taking. The combination of elevated valuations, fading momentum in certain sectors, and renewed FII selling has prompted investors to lock in gains. The absence of fresh positive triggers has further exacerbated the downward pressure.
Technical indicators suggest that the Nifty needs to hold above the 21,900 level to prevent further declines, while resistance is seen near the 22,150 mark. Market participants are advised to maintain a stock-specific approach in the current volatile environment.
