Sensex Drops 346 Points In Fourth Straight Fall, Foreign Fund Outflows & Thin Year-End Trading Weigh On Markets

Mumbai: Indian equity benchmarks ended lower on Monday as selling pressure continued across key sectors, including oil and gas and information technology. Weak global cues, sustained foreign fund outflows and low participation due to year-end holidays weighed on investor sentiment, extending the market’s losing streak.

The BSE Sensex declined by 345.91 points, or 0.41 percent, to close at 84,695.54. During intraday trade, the index slipped as much as 403.59 points to touch a low of 84,637.86. The fall marked the fourth consecutive session of decline for the Sensex.

The NSE Nifty also ended in the red for the third straight day, slipping 100.20 points, or 0.38 percent, to settle at 25,942.10.

Sectoral Pressure and Stock Performance

Selling was seen mainly in oil and gas and IT stocks, which dragged the broader market lower. Among the 30 Sensex constituents, Adani Ports, HCL Technologies, Power Grid, Trent, Bharat Electronics and Bharti Airtel were among the top losers of the session.

On the positive side, a few stocks managed to post gains despite the weak market trend. Tata Steel, Asian Paints, Hindustan Unilever and Eternal ended higher, offering limited support to the benchmark index.

Experts Point to Lack of Triggers

Market experts believe the current phase reflects consolidation rather than panic selling. Vinod Nair, Head of Research at Geojit Investments Limited, said the market appears short of strong triggers for further upside, with many investors remaining in holiday mode. This has resulted in subdued trading activity and cautious positioning.

Ajit Mishra, SVP of Research at Religare Broking, noted that global cues and stock-specific developments are guiding market sentiment. He added that trading volumes remained light, as investors preferred selective exposure in the absence of major domestic or global triggers.

Global Markets and Institutional Activity

Asian markets presented a mixed picture. South Korea’s Kospi jumped over 2 percent, while Shanghai’s SSE Composite ended marginally higher. Japan’s Nikkei and Hong Kong’s Hang Seng closed lower. European markets were trading mostly in the red, while US markets ended flat on Friday.

Foreign Institutional Investors sold equities worth Rs 317.56 crore on Friday, while Domestic Institutional Investors bought shares worth Rs 1,772.56 crore. Meanwhile, Brent crude prices rose 1.70 percent to USD 61.67 per barrel, adding to global market uncertainty.