Indian equity benchmarks came under renewed selling pressure during Monday’s session, reversing early gains as investors reacted to persistent foreign institutional investor (FII) outflows, expensive crude oil and elevated US bond yields.
The BSE Sensex dropped 528.38 points, or 0.73%, to 71,943.95, while the Nifty 50 declined 129.80 points, or 0.58%, to 22,390.65. Both indices retreated sharply from their intraday highs, highlighting continued uncertainty in the domestic stock market.
Why are Sensex and Nifty falling today?
Several factors contributed to the market decline:
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FII selling: Foreign investors continued to withdraw money from Indian equities, extending their selling streak to 11 consecutive sessions through Friday.
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Elevated crude oil prices: Expensive energy imports are raising concerns about inflation and India’s external balances.
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High US bond yields: Higher yields are making dollar-denominated assets more attractive to global investors.
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Global uncertainty: Geopolitical tensions and macroeconomic concerns continue to influence investor sentiment.
Foreign institutional investors sold equities worth Rs 3,568.90 crore, while domestic institutional investors bought shares worth Rs 4,743.26 crore, providing some support to the market.
Rupee recovers against US dollar
The Indian rupee strengthened by 91 paise to Rs 95.80 against the US dollar in early trade after the Reserve Bank of India introduced measures to manage foreign exchange volatility.
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