Markets fall for second day, FPI outflows weigh in
Equity benchmark indices Sensex and Nifty ended lower for the second day on Tuesday as elevated crude oil prices, uncertainty over the Iran war peace deal, higher US Treasury yields and foreign fund outflows weighed on investor sentiment.
The 30-share BSE Sensex dropped 242.65 points, or 0.33 per cent, to settle at 72,529.07. During the day, it slumped 707.72 points, or 0.97 per cent, to 72,064.
The 50-share NSE Nifty declined 64.05 points, or 0.28 per cent, to end at 22,716.20. From the 30 Sensex firms, Titan, HCL Tech, Tata Consultancy Services, UltraTech Cement, Hindustan Unilever and Tech Mahindra were among the major laggards.
Adani Ports, Sun Pharma, Tata Steel and Kotak Mahindra Bank were among the winners. Brent crude, the global oil benchmark, dipped 0.09 per cent to $105.1 per barrel. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 5,353.22 crore on Monday, according to exchange data.
“Domestic equities continue to face correction-led headwinds amid volatile crude prices, US Treasury yields hovering near two-decade highs, and persistent FII outflows exerting pressure on the rupee. Adding to the pressure, the unprecedented pace of IPO fundraising is absorbing incremental liquidity. Investor risk appetite remains subdued against a hawkish global backdrop amid rising odds of additional rate hikes later in the year,” Vinod Nair, Head of Research, Geojit Investments Ltd, said. According to Ajit Mishra, SVP — research, Religare Broking, markets also witnessed selling pressure amid the monthly F&O expiry.
“Markets remained under selling pressure on the monthly expiry day, extending the ongoing corrective trend. After a weak opening, the benchmark indices remained under pressure through most of the session and traded near their lowest levels in nearly six months, before recovering marginally from the lows. Global concerns continued to weigh on sentiment, with crude prices remaining elevated, the US 10-year Treasury yield staying firm,” Mishra said.
The BSE MidCap Select index dropped 0.99 per cent, while the SmallCap Select index was up 0.25 per cent.
Among the BSE sectoral indices, Consumer Durables tumbled 1.97 per cent, Focused IT dropped 1.77 per cent, Insurance 1.57 per cent, Realty 1.49 per cent, IT 1.28 per cent, Hospitals 1.24 per cent, and Housing Finance 0.93 per cent.
Healthcare, Industrials, Telecommunication, Metal and Services closed in the green.
“Indian equity benchmarks extended their slide on Tuesday, with the Nifty and Sensex falling further to fresh six-month lows as the market struggled to stabilise following the sharp correction in the previous session. Crude oil was not the primary catalyst for today’s decline. Weak Asian market cues and continued foreign institutional outflows added to the pressure as global risk appetite remained subdued following the previous session’s geopolitical shock,” Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.
In Asian markets, South Korea’s Kospi, Japan’s Nikkei 225 and Hong Kong’s Hang Seng index ended lower, while Shanghai’s SSE Composite index settled higher.
Markets in Europe were trading in positive territory.
US markets ended lower on Monday.
On Monday, the Sensex tanked 1,124.02 points, or 1.52 per cent, to settle at 72,771.72, the lowest closing level since March 30, 2026. The Nifty dropped 360.25 points, or 1.56 per cent, to end at 22,780.25.
