Markets slip as foreign outflows, trade uncertainty weigh; Sensex down, Nifty under pressure
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Summary: Foreign Institutional Investors (FIIs) started selling, leading to global uncertainty that caused the Sensex to fall, while the Nifty stayed below the crucial 26,000 mark.
On Monday, the Indian financial markets started the week with caution, as major indices fell. This was due to investors worrying about the possibility of a trade deal between the United States and India, along with the ongoing outflow of foreign funds.
The Sensex fell sharply, losing several hundred points, and the Nifty 50 stayed below 26,000 for most of the afternoon. This is a psychological level that traders are keeping a close eye on. Selling pressure was broad-based, with auto, realty and financial stocks among those under pressure as market sentiment stayed fragile.
The FIIs continued to sell Indian stocks due to the downward pressure. The consistent outflow of capital occurs alongside persistent uncertainties regarding trade talks with the United States and their potential effects on corporate profits and export growth.
The Indian rupee weakened again, trading near record lows against the U.S. dollar, reflecting broader risk aversion among global investors — a trend that often feeds back into domestic equity markets.
Traders also pointed to weak global cues from Asian and Western markets, where lacklustre economic data and central bank decisions are keeping risk appetite muted. This week has a lot of important economic and central bank news, so the markets are getting ready for more volatility.
For now, domestic markets are in a wait-and-watch mode — with investors weighing foreign flows, global cues and domestic macro data before committing fresh bets. Any clear development on trade negotiations or central bank policy direction could provide markets with much-needed direction in the coming sessions.
