Sensex, Nifty close the day in red amid FII selling and elevated crude oil prices
New Delhi: The Indian equity market ended lower on Tuesday, with benchmark indices unable to sustain momentum amid global volatility and continued selling by foreign institutional investors.
The BSE Sensex closed at 76,886.91, down 416.72 points or 0.54 per cent, while the NSE Nifty 50 settled at 23,995.70, declining 97.00 points or 0.40 per cent.
Commodity trends remained mixed. Brent crude was trading at USD 111.30, up USD 3.07 or 2.84 per cent, adding to inflation concerns. Gold prices, however, slipped to USD 4,611.21, down USD 71.95 or 1.54 per cent. Crude oil showed the strongest percentage gain, rising 3.40 per cent to USD 99.65.
Global cues weighed on domestic sentiment, with major Asian markets under pressure. Japan’s Nikkei 225 dropped 1.16 per cent, losing over 696 points, while Hong Kong’s Hang Seng declined 1.09 per cent.
In contrast, U.S.market futures indicated modest gains, with Dow Jones futures up 0.35 per cent and Nasdaq futures edging higher by 0.20 per cent.
Earlier in the day, Indian markets had opened on a cautious note. The Nifty 50 began at 24,049.90, down 42.80 points or 0.18 per cent, while the Sensex opened at 77,094.79, falling 208.84 points or 0.27 per cent, amid ongoing FII selling, elevated crude oil prices, and geopolitical tensions in West Asia.
Market experts attributed the subdued sentiment to persistent global headwinds and shifting investor preferences.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, also pointed to key factors driving sustained FII outflows from India.
“The principal reason behind this underperformance is the booming AI trade, which began in 2025 and is continuing this year. A few AI stocks are driving this AI trade globally. Bulk of portfolio flows are hot money that chase momentum. So long as this market momentum continues, FIIs are likely to continue selling,” he said.
He further noted, “But dominant market trends are temporary. There are strong views that there is a bubble in AI stocks. So there can be a correction in this segment at any time. That can be a trigger for the resumption of portfolio flows into India. Investors should watch out for this trend. When that happens, fairly-valued large caps will outperform. Till then, the mid and small caps which don’t have significant FII exposure may continue to outperform.”
(DD News)
