India’s equity market ended its 8-day losing streak on Friday as the benchmark indices—BSE Sensex and NSE Nifty50—closed in positive territory despite a sluggish start to the trading session. At closing, the Sensex rose by 57.65 points, or 0.08%, to 75,996.86, while the Nifty gained 30.25 points, or 0.13%, to settle at 22,959.50.
However, foreign institutional investors (FIIs) continued their selling spree, offloading shares worth Rs 3,938 crore (net sales) on Monday. Including Monday’s figures, total FII selling in the cash market for 2025 has now reached Rs 1.10 crore, reflecting persistent caution among global investors.
Analysts attribute the FII exodus to concerns over high valuations and ongoing global trade uncertainties. Additionally, rising US bond yields have made these investments appear more attractive and secure.
In the broader market, the BSE Midcap index closed 0.5% higher, while the Smallcap index fell by 0.6%. Despite the benchmarks’ gains, market breadth remained negative. Out of 2,955 stocks traded on the NSE, 1,014 advanced, 1,871 declined, and 70 remained unchanged on Friday.
The recovery in the benchmarks is largely attributed to bargain hunting at lower levels, as several stocks entered oversold territory. Since February 4, the Sensex and Nifty have each dropped over 3%, with broader indices experiencing double-digit declines.
“Markets managed modest gains in a late recovery during a highly volatile session, but the key takeaway was the halt of the 8-session losing streak,” said Prashanth Tapse, Senior VP (Research) at Mehta Equities.
He added, “Positive cues from Asian and European markets boosted sentiment, while gains in select banking, oil & gas, metals, and power stocks helped local benchmarks recover from early lows.”
Vinod Nair, Head of Research at Geojit Financial Services, noted that modest Q3 FY25 earnings growth, combined with sustained FII selling, is capping the potential for a near-term market rebound. A weakening rupee and a widening trade deficit are also likely to keep investors cautious.
“Despite a sharp correction in broader indices, valuations remain unattractive. However, any easing of US trade uncertainties and early signs of recovery in discretionary spending could support a market rebound,” Nair added.
Sector-wise, Pharma, Banks, Financial Services, Healthcare, OMCs, Consumer Durables, and Metals closed in the green on Monday. Adani Enterprises, Bajaj Finserv, IndusInd Bank, Power Grid Corporation, and Adani Ports were among the top gainers in the Nifty50 pack.