Have Sensex and Nifty Experienced Mild Losses Amid Ongoing FPI Outflows?
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Synopsis
The Indian stock market faced a mild downturn today as both Sensex and Nifty recorded losses, primarily due to negative global cues and ongoing selling by foreign portfolio investors. With upcoming auto sales data expected, investors are advised to remain cautious and await clearer market signals.
Key Takeaways
- Indian indices opened lower due to global cues.
- Sensex fell by 115 points, Nifty by 30 points.
- Sectoral shifts saw Nifty PSU Bank as the largest loser.
- Immediate support for Nifty is 25,850–25,900.
- Investors should watch for upcoming auto sales data.
Mumbai, Dec 30 (NationPress) The Indian benchmark indices opened the day on a negative note on Tuesday, impacted by unfavorable global signals, a technology sell-off on Wall Street, and persistent selling by foreign portfolio investors (FPIs).
At approximately 9:30 AM, the Sensex dropped by 115 points, or 0.14 percent, reaching 84,579, while the Nifty fell by 30 points, or 0.12 percent, settling at 25,911.
Broad market indices mirrored these trends, with the Nifty Midcap 100 decreasing by 0.03 percent, and the Nifty Smallcap 100 witnessing a decline of 0.08 percent.
In sector performance, the Nifty PSU Bank was the largest loser, down 0.18 percent, closely followed by Nifty Realty, which decreased by 0.13 percent.
Analysts indicate that immediate support lies in the 25,850–25,900 range, whereas resistance is seen between 26,150–26,200.
Despite a weak year-end trend, there is no indication of a significant directional shift in the market. The advance-decline ratio remains unfavorable, with the Nifty dropping 100 points yesterday amid low volumes.
A clear directional change is anticipated at the start of the new year, as major institutions resume operations. Market experts advise investors to await new triggers and directional shifts.
The upcoming auto sales figures, set to be released in two days, are expected to provide insights into the durability of the consumption boom and overall economic growth.
In the Asia-Pacific region, most markets experienced declines during the morning session, primarily due to the tech sell-off in the U.S.
Among Asian markets, China's Shanghai index fell by 0.1 percent, while Shenzhen rose by 0.23 percent. Japan's Nikkei dipped by 0.11 percent, and Hong Kong's Hang Seng Index increased by 0.47 percent. South Korea's Kospi saw a slight decline of 0.01 percent.
On Monday, U.S. markets closed lower, with the Nasdaq falling by 0.5 percent, S&P 500 easing by 0.35 percent, and the Dow decreasing by 0.51 percent.
On December 29, foreign institutional investors (FIIs) sold equities worth Rs 2,760 crore, while domestic institutional investors (DIIs) were net buyers, acquiring equities worth Rs 2,644 crore.
Point of View
It's crucial to reflect on the current market dynamics. While the mild losses in the Sensex and Nifty may seem concerning, this situation is not indicative of a long-term downturn. Investors should remain vigilant and keep an eye on upcoming economic indicators that could signal market recovery. Our approach is to provide reliable insights and support informed decision-making.
NationPress
30/12/2025
Frequently Asked Questions
What caused the recent decline in Sensex and Nifty?
The recent decline in Sensex and Nifty is attributed to negative global cues, a tech sell-off on Wall Street, and sustained selling by foreign portfolio investors (FPIs).
What are the key support and resistance levels for Nifty?
Immediate support for Nifty is positioned in the 25,850–25,900 range, while significant resistance is observed between 26,150–26,200.
What impact do auto sales numbers have on the market?
Auto sales numbers are expected to provide insights into the sustainability of consumption and overall economic growth, which can influence market sentiment.
How did foreign institutional investors impact the market?
Foreign institutional investors (FIIs) sold equities worth Rs 2,760 crore, contributing to the downward pressure on the market.
What is the outlook for the stock market in the new year?
Analysts anticipate a clearer directional change in the stock market early in the new year, particularly when major institutions resume trading.
