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    Indian Stock Markets Extend Losses for Second Consecutive Day; Sensex Drops 245 Points

    5 days ago

    Indian equity markets continued to face selling pressure on Wednesday, extending losses for the second consecutive day amid geopolitical tensions, foreign fund outflows, and tariff-related uncertainties. The benchmark indices Sensex and Nifty ended lower, dragged down by weakness in IT, consumption, and select banking stocks.

    The 30-share BSE Sensex closed 244.98 points, or 0.29%, down at 83,382.71. During the session, it touched an intraday low of 83,185.20, representing a fall of 442.49 points from the previous day’s close. Meanwhile, the 50-share NSE Nifty ended 66.70 points, or 0.26%, lower at 25,665.60.

    Sectoral Movements and Key Laggards

    Among Sensex constituents, major losses were seen in Tata Consultancy Services (TCS), Asian Paints, Maruti, Sun Pharma, Hindustan Unilever, ICICI Bank, Kotak Mahindra Bank, Tech Mahindra, HDFC Bank, and Larsen & Toubro. These companies bore the brunt of investor caution amid global uncertainty and concerns over corporate earnings.

    On the other hand, Tata Steel, NTPC, Axis Bank, and UltraTech Cement emerged as gainers, providing some relief to the indices. Analysts noted that selective buying in metal and infrastructure stocks helped limit sharper declines.

    Foreign Fund Outflows Weigh on Markets

    Foreign institutional investors (FIIs) continued to exit Indian equities, offloading shares worth ₹1,499.81 crore on Tuesday, according to exchange data. Domestic institutional investors (DIIs) partially offset the outflows by purchasing equities worth ₹1,181.78 crore, but the net impact remained negative for the market.

    Persistent FII outflows, coupled with global risk aversion triggered by geopolitical tensions, have been key factors influencing market sentiment. Analysts say that investors remain cautious due to tariff uncertainties, fluctuating crude oil prices, and volatility in global markets.

    Global Market Trends

    Asian markets delivered a mixed performance on Wednesday. While South Korea’s Kospi, Japan’s Nikkei 225, and Hong Kong’s Hang Seng closed higher, China’s Shanghai Composite ended lower. European markets were trading in positive territory, whereas U.S. markets had posted losses on Tuesday.

    Brent crude, the international oil benchmark, eased 0.99% to $64.82 per barrel, reducing some pressure on oil-importing nations like India. However, analysts warned that any sudden spike in crude prices could again impact domestic equities and currency markets.

    Market Outlook

    Analysts suggest that Indian markets may continue to experience volatility in the near term due to a combination of domestic and global factors. While domestic institutional buying provides some support, uncertainty arising from foreign fund flows, geopolitical developments, and tariff issues may weigh on investor sentiment.

    Investors are advised to monitor sectoral performance closely, with particular attention to IT, banking, and consumption stocks, which have been more sensitive to global cues.

     

    Despite the recent downturn, long-term fundamentals of the Indian economy remain robust, with corporate earnings and domestic consumption expected to drive market recovery in the coming months.

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