Mumbai, Oct 1: Indian equities faced another session of selling pressure on Thursday, with benchmark indices ending sharply lower as investors remained cautious amid foreign fund outflows, a weaker rupee, elevated global bond yields and uncertainty in crude oil prices.
The BSE Sensex fell 570.59 points, or 0.79 per cent, to 71,909.70, while the Nifty 50 declined 198.50 points, or 0.88 per cent, to settle at 22,421.95. The Nifty’s close below the 22,450 mark added to concerns about the market’s near-term momentum.
Foreign outflows weigh on sentiment
Foreign investor selling continued to be a major drag on domestic equities. Foreign portfolio investors reportedly sold Indian shares worth more than Rs 10,000 crore on September 30, keeping pressure on the market and raising concerns over the persistence of overseas capital outflows.
The rupee’s weakness against the US dollar further added to investor caution. At the global level, higher US bond yields and uncertainty surrounding the interest-rate outlook have made emerging-market assets less attractive for some investors.
Auto and metal stocks bear the brunt
The selling was spread across several sectors, indicating broad-based weakness rather than pressure limited to a single segment of the market.
Auto stocks were among the major decliners, while metal, infrastructure, consumer durables, media, FMCG and real estate counters also came under pressure. Bajaj Auto, Maruti Suzuki, Mahindra & Mahindra and Shriram Finance were among the notable laggards on the Nifty.
However, the decline was not uniform across the market. Some IT, banking and insurance stocks managed to hold on to gains, providing limited support to the broader indices.
Broader market also turns cautious
The weakness extended beyond the headline indices, with mid-cap and small-cap stocks also ending lower. The rise in the India VIX, which tracks expected market volatility, reflected heightened nervousness among investors.
The movement suggests that market participants are becoming increasingly sensitive to changes in global financial conditions, currency movements and foreign portfolio flows.
Oil, global yields and earnings in focus
Crude oil remains another important variable for Indian markets. Although softer oil prices offered some relief during parts of the session, continued volatility in the energy market remains a concern for India because of its dependence on imported crude.
Going ahead, investors are likely to track US Treasury yields, movements in the rupee, foreign institutional flows and global market trends closely. Domestic indicators, corporate sales updates and the upcoming earnings season will also be important in determining market direction.
Thursday’s decline adds to the recent pressure on Indian equities, with investors now looking for stronger domestic cues and greater stability in global markets before taking fresh positions.