Indian benchmark equity indices witnessed a sharp intraday reversal in today's trading session, with the Sensex crashing nearly 940 points from its day’s high and the Nifty slipping below 22,400 as sustained foreign investor selling, elevated crude prices and global macroeconomic concerns weighed on sentiment.
The Sensex was down 528.38 points, or 0.73%, at 71,943.95. The index had opened at 72,771.32 and climbed to a high of 72,884.25 before falling to an intraday low of 71,898.17. This marked a fall of 940.30 points, or nearly 1.3%, from the day’s high.
The Nifty 50 was down 129.80 points, or 0.58%, at 22,390.65. It opened at 22,593.20 and touched a high of 22,651.10 before slipping to a low of 22,370.65, marking a fall of over 260 points from the day’s high.
The sell-off came despite a sharp recovery in the rupee, which gained 91 paise to ₹95.80 against the US dollar in early trade after the Reserve Bank of India announced measures to contain volatility in the foreign exchange market. The RBI has introduced a dedicated dollar window for oil marketing companies through designated banks and increased the cost of certain foreign exchange hedging transactions, measures aimed at reducing spot-market dollar demand and curbing speculative positions.
However, the measures have failed to fully ease broader market concerns. Persistent FII selling remains a key overhang, with foreign investors having extended their selling streak to 11 consecutive sessions through Friday. FIIs net sold ₹3,568.90 crore; meanwhile, DIIs provided support and net bought ₹4,743.26 crore. Elevated crude prices and high US bond yields are also keeping pressure on Indian equities.
Tech Mahindra, ITC drag Nifty50
The top five Nifty 50 laggards were Tech Mahindra, which was down 3.01%, followed by ITC (-2.63%), Bharti Airtel (-2.08%), SBI (-1.95%), and NTPC (-1.86%).
On the other hand, Bajaj Auto, Dr. Reddy's Laboratories and Mahindra and Mahindra bucked the overall trend to trade in the range of 1.5% to 3.20%.
Among sectors, PSU banks and FMCG were the biggest laggards, while media and auto stocks were among the top gainers. Nifty PSU Bank fell 1.44%, followed by FMCG at 1.30%, while Nifty Media gained 3.23% and Auto rose 1.07%.
Avenue Supermarts was among the notable stock-level decliners, falling over 3% after its September-quarter earnings raised concerns over margins, profitability and higher debt amid increased capital expenditure and working-capital requirements.
Here's what analysts say
“The market is going through a stage wherein external headwinds are dominating the domestic tailwinds. Elevated crude prices and high US bond yields will continue to impact the market. FIIs will continue to sell in the near-term and DIIs will continue to absorb the FII selling. This is the likely near-term market scenario,” said V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
Vijayakumar said sustained FII selling had made India one of the worst-performing markets this year, but added that the sharp correction had made valuations fair and, in many segments, attractive.
“Therefore, investors can accumulate fairly-valued growth stocks ignoring the uncertainty and volatility in the market. For investors with a medium-to-long-term investment horizon, this market provides value buying opportunities. Patience is the key,” he said.
“If crude declines sharply following favourable developments in the Middle East, the market can rally significantly from the current levels,” Vijayakumar added.
Ponmudi R, CEO of Enrich Money, said Indian equities were likely to remain cautious as investors looked for follow-through buying after Friday’s sharp rebound. “The IT-led advance has improved near-term sentiment, but sustained buying will be crucial to establishing a firmer market direction,” he said, adding that persistent FII outflows remained a significant overhang.
“WTI crude is trading around $90–91 a barrel, while the rupee remains under pressure near ₹96.73 against the U.S. dollar,” Ponmudi said. He added that elevated energy prices and currency weakness could compound imported inflation and strain India’s external balances.
“A sustained moderation in oil prices would help ease these pressures, although the geopolitical outlook remains uncertain,” he said.