Sensex and Nifty Indices Decline Amid Foreign Fund Outflows and Geopolitical Concerns The benchmark Sensex and Nifty indices closed lower on Thursday, with the Sensex settling 550 points below its intraday high and the Nifty ending below the 24,350 level. The decline followed a volatile trading session as investors remained cautious amid persistent foreign institutional investor (FII) outflows, rising crude oil prices, and ongoing geopolitical tensions. The market’s performance was marked by mixed global cues and profit booking after a sharp rally in the previous session. The Sensex fell 114 points or 0.15 percent to 77,844.52, while the Nifty declined 4.30 points or 0.018 percent to 24,326.65. Both indices had surged over 1.2 percent in the prior session, but the rebound was short-lived as selling pressure emerged. The broader markets traded between gains and losses, with key sectoral indices such as FMCG, banking, realty, consumer durables, and oil and gas facing pressure. PSU banks and the IT sector declined 0.6 percent and 0.7 percent, respectively, after strong gains in the previous session. The decline was attributed to several factors. First, Brent crude prices rose above $102 per barrel, driven by geopolitical developments in the Middle East. Higher oil prices are seen as a drag on India’s economy, as they increase import costs, widen the trade deficit, and exert upward pressure on inflation and the rupee. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that the market remains in a state of uncertainty, oscillating between hope and fear over the Middle East crisis. Second, foreign institutional investors continued to sell equities, with FIIs offloading shares worth Rs 5,834.90 crore on Wednesday. This outflow added to the downward pressure on domestic equities.#brent_crude #sensex #geojit_investments #india_vix #nifty_indices
Indian equity markets show 'structural resilience' amid FII outflows The Indian stock market faced sustained selling pressure due to escalating geopolitical tensions in West Asia, yet the Sensex and Nifty indices closed higher on the final trading day of the week. The Nifty ended at 23,114, gaining 0.49 per cent, while the Sensex rose 324 points or 0.44 per cent to 74,532. Despite a decline of 0.04 per cent during the week, the indices showed resilience amid ongoing market volatility. Sectoral performance varied, with Nifty IT and PSU Banks leading gains. Metal stocks also attracted strong buying interest, as the Nifty Metal index surged over 2 per cent. Analysts attributed this to positive brokerage commentary and improved demand outlooks. Broader indices, however, diverged from the benchmarks, with the Nifty Midcap100 rising 0.06 per cent while the Nifty Smallcap100 fell 1.11 per cent. The Indian rupee hit a record low of Rs 93.49 against the US dollar, driven by high dollar demand, sustained foreign institutional investor (FII) outflows, and global currency pressures. Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services, noted that the near-term outlook remains cautious, citing elevated crude oil prices and ongoing geopolitical tensions in West Asia. FIIs recorded cumulative outflows of Rs 81,263 crore over the past 13 sessions, further weighing on sentiment. Analysts highlighted key resistance and support levels for the Nifty, with 23,850 as the immediate resistance followed by 24,000 and 24,150. On the downside, 22,950 and 22,700 were identified as crucial support levels. The index has declined nearly 13 per cent from its all-time high, signaling a significant corrective phase in the broader market.#sensex #indian_stock_market #motilal_oswal_financial_services #nifty_indices #rbi
