Sensex Falls as Nifty Slips Below 26,100
Indian equity markets opened lower, with benchmark indices Sensex and Nifty registering losses amid cautious investor sentiment. The Sensex declined by around 200 points, while the Nifty slipped below the key 26,100 level in early trade. Market participants remained wary as selling pressure persisted in select heavyweights, dragging the indices lower.
Foreign Selling and Global Cues
Analysts attributed the decline largely to continued selling by foreign institutional investors, which has been a key factor influencing market direction in recent sessions. Weak global cues and subdued risk appetite also weighed on sentiment, particularly as overseas markets showed mixed trends. With global investors remaining cautious, domestic markets mirrored the uncertainty.
Sectoral Performance
Financial and IT stocks were among the major laggards, contributing significantly to the fall in benchmark indices. Banking stocks faced pressure due to profit booking, while IT shares saw muted demand amid concerns over global growth prospects. Broader markets showed limited resilience, with mid-cap and small-cap stocks trading mixed, reflecting selective buying.
Thin Volumes and Year-End Caution
Trading volumes remained relatively thin, typical of the year-end period, as many investors stayed on the sidelines awaiting clearer signals. Market participants said volatility could continue in the near term due to low participation and ongoing fund rebalancing by institutional investors.
Outlook Ahead
Experts believe market direction will depend on foreign fund flows, global economic developments, and upcoming macroeconomic cues. Until stronger triggers emerge, indices may continue to trade with a cautious bias.
