Sensex Drops 961 Points, Nifty Slips 317 on FII Sell-Off

Indian equity markets ended sharply lower on Friday, with benchmark indices falling more than 1% amid foreign investor selling and weak global signals.

The BSE Sensex declined 961.42 points, or 1.17%, to close at 81,287.19. During the session, it dropped over 1,000 points at its lowest level.

The Nifty50 fell 317.90 points, or 1.25%, to settle at 25,178.65. This marks the second consecutive day of losses for domestic markets.

The decline wiped out more than Rs 5.5 lakh crore in investor wealth, with total market capitalisation on the BSE slipping to around Rs 463 lakh crore.

1) Continued FII Selling

One of the key reasons behind the fall was sustained selling by foreign institutional investors (FIIs). According to NSE data, FIIs net sold Indian equities worth nearly Rs 3,466 crore in the previous session.

Domestic institutional investors (DIIs) offered some support, remaining net buyers with purchases of about Rs 5,032 crore.

2) Weak Global Cues

Global market trends also weighed on sentiment.

On Wall Street, the tech-heavy Nasdaq Composite closed over 1% lower as momentum in technology stocks slowed. Shares of Nvidia dropped around 5% after a recent rally. Alphabet declined nearly 2%, Amazon fell more than 1%, and AMD lost over 3%. Salesforce was among the few gainers, rising over 4% after earnings.

In Asia, Japan’s Nikkei 225 edged up slightly, while South Korea’s Kospi fell about 1%. Markets in Hong Kong and mainland China were trading higher.

3) US-Iran Tensions

Geopolitical concerns added to investor caution. The United States and Iran reportedly held indirect talks regarding Iran’s nuclear programme, but no agreement was reached.

Uncertainty over potential escalation, including military developments in the region, contributed to risk-off sentiment in global markets.

4) Rupee Weakness

The Indian rupee weakened slightly against the US dollar amid continued demand for the American currency.

The rupee opened at 90.9475 per dollar compared to the previous close of 90.9050 and was trading around 90.5 during the afternoon session.

Technical Outlook

According to brokerage firm Bajaj Broking, the Nifty has breached an immediate resistance level of 25,650. Analysts noted that a sustained move above this level would signal a pause in the ongoing correction.

The index has been consolidating in the 25,350–25,900 range over the past nine sessions. A decisive move below 25,327 could lead to further downside towards the 200-day exponential moving average near 25,100–25,200, the brokerage said.

Market Mood

Selling pressure was seen across sectors including FMCG, automobile, real estate and pharmaceuticals.

With global cues remaining uncertain and geopolitical tensions elevated, analysts expect volatility to stay high in the near term.

(Disclaimer: Market investments are subject to risk. Investors should consult certified financial advisors before making investment decisions.)