Domestic equity markets extended their decline on Thursday as investor sentiment turned sharply risk-averse amid intensifying global trade concerns and sustained foreign institutional investor (FII) selling.
Massive Wealth Erosion
Investors suffered a significant erosion of wealth, with nearly Rs 8 lakh crore wiped off market capitalisation in a single session. The total market value of BSE-listed companies slipped to below Rs 472.25 lakh crore from around Rs 480.07 lakh crore in the previous session.
FII Selling Pressures Markets
FIIs remained net sellers, offloading equities worth Rs 3,367 crore during the day, adding further pressure on benchmark indices. In December so far, foreign investors have been net sellers to the tune of $2.6 billion.
Domestic Funds Offer Partial Support
Domestic institutional investors (DIIs), however, provided some cushion to the markets, registering net purchases worth $8.9 billion during the same period.
Global Trade Jitters Intensify
Market sentiment deteriorated sharply after fresh uncertainty emerged following US President Donald Trump backing a Bill proposing punitive tariffs on Russian oil. The proposed move may impact India and has raised fears of a broader escalation in global trade tensions.
Benchmarks Extend Losing Streak
Benchmark indices fell for the fourth consecutive session. The Sensex closed 780.18 points lower at 84,180.96, while the Nifty declined 263.90 points to settle at 25,876.85.
Sectoral Losses Broad-Based
Losses were broad-based across sectors, with metal, oil and gas, PSU banks and IT stocks leading the decline during the session.
