Indian Stock Markets Tumble as Foreign Funds Exit and Global Risks Escalate
Benchmark equity indices in India experienced a sharp decline on Friday, with both the Sensex and Nifty falling over 1 percent. This downturn was driven by fresh outflows from foreign institutional investors and deteriorating global market conditions, exacerbated by rising geopolitical tensions that have unsettled investor confidence.
Key Index Performances and Intraday Lows
The 30-share BSE Sensex plunged by 961.42 points, or 1.17 percent, closing at 81,287.19. During the trading session, it hit an intraday low of 81,159.15, marking a drop of 1,089.46 points or 1.32 percent. Similarly, the 50-share NSE Nifty declined by 317.90 points, or 1.25 percent, settling at 25,178.65. These losses reflect a broad-based sell-off across multiple sectors, as market participants turned cautious amid uncertain global developments.
Top Gainers and Losers in Nifty50 and Sensex
In the Nifty50 index, the top gainers included HCL Tech (+1.14%), Trent (+1.13%), Infosys (+0.86%), Kwality Wall’s (+0.70%), and Apollo Hospital (+0.60%). Conversely, the major losers were Sun Pharma (-2.73%), Bharti Airtel (-2.61%), HDFC Life (-2.55%), M&M (-2.51%), and Dr Reddy’s (-2.51%). For the Sensex, the gainers mirrored those in Nifty50, with HCL Tech, Trent, and Infosys leading, while the losers featured Sun Pharma, Bharti Airtel, M&M, Maruti Suzuki (-2.35%), and Bajaj Finserv (-2.35%). This mixed performance highlights selective buying in tech and healthcare stocks against widespread declines in auto, FMCG, and pharma sectors.
Foreign and Domestic Institutional Investor Activity
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,465.99 crore on Thursday, according to exchange data, indicating a risk-averse stance amid global uncertainties. In contrast, Domestic Institutional Investors (DIIs) provided some support by purchasing shares worth Rs 5,031.57 crore, though this was insufficient to offset the selling pressure from foreign entities.
Expert Insights on Market Sentiment
Vinod Nair, Head of Research at Geojit Investments Limited, commented, "Indian markets continued to consolidate amid weak global cues and rising geopolitical risks, with investor sentiment turning increasingly cautious. The lack of progress in US–Iran nuclear talks has intensified concerns of further escalation of Middle East tensions, while persistent AI-related uncertainty is also supporting safe-haven flows. Domestically, a risk-off tone prevails as the earnings season winds down and global macro factors take precedence."
Hariprasad K, Research Analyst and Founder of Livelong Wealth, added, "Weak global cues and rising geopolitical uncertainty following inconclusive US–Iran talks weighed on investor confidence, triggering broad-based profit-booking across auto, FMCG and pharma stocks after recent advances. The absence of fresh domestic triggers further accelerated the downside momentum, especially during the final hour of trade."
Global Market Context
Asian markets delivered mixed performances, with South Korea's Kospi falling about 1 percent, while Japan's Nikkei 225, Shanghai's SSE Composite index, and Hong Kong's Hang Seng index ended higher. European markets were trading on a mixed note in mid-session deals, and US markets had closed mostly lower on Thursday, contributing to the negative sentiment in Indian equities.
The combination of foreign fund outflows, stalled geopolitical negotiations, and a lack of positive domestic catalysts has created a challenging environment for Indian stocks, leading to significant declines in key indices as investors seek safer assets amid global turmoil.
