Indian equity markets ended the day in the red, with benchmark indices facing downward pressure as Foreign Institutional Investors (FIIs) offloaded shares worth ₹2,035 crore. However, Domestic Institutional Investors (DIIs) attempted to cushion the fall, purchasing equities worth ₹2,320 crore. The session remained volatile, reflecting caution among investors amid global macroeconomic concerns and upcoming policy cues.
Market Performance Overview
The Nifty 50 closed lower by 0.29%, settling at 22,481.75, while the BSE Sensex declined by 0.32% to 74,108.62. Despite a positive opening, markets succumbed to selling pressure as the session progressed, driven by profit-booking in IT and banking stocks and weak global cues.
Investors also treaded cautiously ahead of the European Central Bank (ECB) policy decision, which is expected to provide further clarity on global interest rate trends and liquidity conditions.
Sectoral Performance – Mixed Trends Across Indices
- IT stocks saw declines, with the Nifty IT index falling 0.7%, impacted by concerns over potential tariff implementations by the U.S. that could affect major Indian IT companies.
- Auto stocks bucked the trend, rising 0.4% amid optimism that the removal of import duties on U.S. cars may have limited effects on domestic automakers.
- Metal stocks surged, gaining 1.5%, driven by strength in global commodity markets and improving demand outlook.
- Oil & Gas and Pharma sectors also gained, rising 1.2% and 0.6% respectively, supported by stable crude oil prices and strong pharma exports.
- Banking stocks struggled, with private sector banks seeing mild declines due to profit-booking after recent gains.
FII and DII Trading Activity – FIIs Continue Selling Spree
- FIIs remained net sellers, offloading ₹2,035 crore worth of equities, reflecting risk aversion amid global uncertainties.
- DIIs acted as a stabilizing force, injecting ₹2,320 crore into the market, absorbing some of the selling pressure from FIIs.
Commodities Market Update
- Gold prices remained firm, trading at ₹87,750 per 10 grams, as investors sought safety amid economic uncertainties.
- Silver prices softened, settling at ₹97,850 per kilogram, tracking global fluctuations in industrial demand.
Market Outlook
Market volatility may persist in the coming sessions as investors react to ECB’s policy decision, FII-DII activity, and global economic developments. While institutional support from DIIs has provided some stability, caution remains warranted as global uncertainties continue to weigh on sentiment.
Today’s market movements reflected a mix of profit booking, institutional flows, and global caution ahead of major economic events. Investors are advised to keep an eye on central bank policies and global trade developments for further cues on market direction.