Indian equities took a step back Tuesday as persistent outflows from foreign institutional investors overshadowed positive sentiment from global markets. Here’s what happened on the ground:
The Numbers:
BSE Sensex: down 313.70 points (-0.37%) to 84,587.01
NSE Nifty 50: down 74.70 points (-0.29%) to 25,884.80
Mid-caps and small-caps: both +0.2% (slight resilience)
Market breadth: marginally positive (2,093 gainers vs 2,079 losers)
The Drag:
IT and media stocks led the decline. Trent and TMPV each fell ~1.6%, while heavyweights like Kotak Mahindra, HCL Technologies, HDFC Bank, Power Grid, and Infosys all dropped around 1%.
Why the Volatility?
The monthly expiry of Nifty F&O contracts added noise to the session, creating swings between gains and losses before settling lower. Foreign selling continued to weigh despite positive global cues.
The Tailwind (That Wasn’t Enough):
Global markets cheered AI optimism and expectations of Fed rate cuts. Trump’s announcement of an April China visit at Xi Jinping’s invitation also boosted sentiment. Gold edged down slightly after hitting one-week highs on dovish Fed comments. Oil drifted lower on oversupply concerns ahead of U.S. economic data.
Bottom line: External positivity couldn’t offset FII outflows. Investors will keep an eye on upcoming U.S. economic releases for clues on inflation and consumer health.
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India's Stock Market Faces Foreign Selling Pressure Ahead of F&O Expiry
Indian equities took a step back Tuesday as persistent outflows from foreign institutional investors overshadowed positive sentiment from global markets. Here’s what happened on the ground:
The Numbers:
The Drag: IT and media stocks led the decline. Trent and TMPV each fell ~1.6%, while heavyweights like Kotak Mahindra, HCL Technologies, HDFC Bank, Power Grid, and Infosys all dropped around 1%.
Why the Volatility? The monthly expiry of Nifty F&O contracts added noise to the session, creating swings between gains and losses before settling lower. Foreign selling continued to weigh despite positive global cues.
The Tailwind (That Wasn’t Enough): Global markets cheered AI optimism and expectations of Fed rate cuts. Trump’s announcement of an April China visit at Xi Jinping’s invitation also boosted sentiment. Gold edged down slightly after hitting one-week highs on dovish Fed comments. Oil drifted lower on oversupply concerns ahead of U.S. economic data.
Bottom line: External positivity couldn’t offset FII outflows. Investors will keep an eye on upcoming U.S. economic releases for clues on inflation and consumer health.