Sensex Tumbles 961 Points Amid Broad-Based Selling Spree
In a sharp downturn, the Bombay Stock Exchange (BSE) Sensex plummeted by 961 points, or 1.2%, on Friday, closing at 81,287 points. This decline was driven by widespread selling across sectors, with banks leading the losses as investor sentiment soured ahead of the weekend.
Foreign Funds Fuel Market Slide with Massive Outflows
Foreign institutional investors (FIIs) were at the forefront of the selling pressure, recording a net outflow of Rs 7,536 crore for the day. Combined with Thursday's net selling of Rs 2,429 crore, the total outflow over just two sessions neared Rs 10,000 crore. This aggressive selling contributed to a significant erosion of wealth, with investors losing approximately Rs 5 lakh crore as BSE's market capitalisation dropped to 463.5 lakh crore.
Nifty Follows Suit with 318-Point Drop
On the National Stock Exchange (NSE), the Nifty index mirrored the downturn, falling by 318 points, or 1.3%, to close at 25,179 points. The broader market showed a mixed picture, with 2,633 stocks declining compared to 1,574 advancing, according to BSE data, indicating that the selling was not as skewed as in the Sensex.
Expert Analysis Points to Multiple Headwinds
Ajit Mishra, Senior Vice President of Research at Religare Broking, highlighted that the selling was broad-based across sectors. He noted, "Investor sentiment weakened due to a combination of factors including inconsistent foreign flows, weak global cues, and lingering geopolitical tensions. In addition, the underperformance of select heavyweights across sectors further intensified the decline." Among the 30 Sensex constituents, 25 closed in the red, with ICICI Bank, HDFC Bank, and Bharti Airtel being the biggest contributors to the index's slide.
Global Markets Also Face Pressure
The downturn was not isolated to Indian markets. On Wall Street, major indices declined on Friday, with the Dow Jones Industrial Average falling 602 points (1.2%) to 48,897, the S&P 500 losing 46 points (0.7%) to 6,863, and the Nasdaq Composite dropping 226.6 points (1%) to 22,652. This global sell-off, partly driven by anxiety over artificial intelligence stocks impacting technology sectors, added to the negative sentiment in Indian markets.
Overall, the market's performance reflects heightened investor jitters fueled by tariff uncertainties, foreign fund selling, and a lack of progress in Iran-US talks, underscoring the volatile nature of current economic conditions.
