24/8/2015 - BIKANER: A Broker reacts while watching the downfall of stocks as the BSE Sensex fell over by 856.65 points, or 1.14%.
Center-Center-DelhiIndia’s equity market witnessed a sharp fall on Monday, with benchmark indices—the BSE Sensex and NSE Nifty50—plunging to their lowest levels in eight months. The sell-off was driven by weakening global cues and persistent foreign institutional investor (FII) selling amid concerns over US trade policies. The 30-share Sensex tumbled by 856.65 points, or 1.14%, to close at 74,454.41, while the Nifty50 dropped by 242.55 points, or 1.06%, to settle at 22,553.35. So far in 2025, both indices have declined by over 5%.
The market’s downturn was fueled by a fall in US consumer sentiment to a 15-month low in February and expectations of inflation remaining at a higher level due to President Donald Trump’s tariff plans. Prashanth Tapse, Senior VP (Research) at Mehta Equities, highlighted that the market is worried about the US’s potential move to impose higher tariffs, which could impact developing economies like India. He also noted that FIIs showing no signs of slowing their exit from India is weighing heavily on the markets.
FIIs have been relentless in their selling of Indian equities, offloading shares worth Rs 112,492 crores so far in 2025. Analysts attribute this trend to expensive valuations in the Indian market and the growing attractiveness of other markets, particularly China.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, pointed out that the market is facing headwinds from relentless FII selling and global uncertainties related to Trump’s tariff policies. He added that rising long-term inflation expectations in the US could delay expected rate cuts by the Federal Reserve, potentially turning the Fed hawkish. This could further impact US stock markets and, in turn, influence FII behavior in India.
Vijayakumar suggested that if US bond yields decline, FIIs might cease selling and even resume buying Indian equities.
In the Nifty50 pack, IT stocks such as Wipro, HCL Tech, TCS, and Infosys were among the biggest losers, reflecting their high exposure to the US market. On the other hand, Mahindra & Mahindra, Dr Reddy's Labs, Eicher Motors, and Hero MotoCorp were the top gainers.
Sectorally, the Nifty IT index fell by 2.7%, while the Nifty Pharma index dropped by 2.17%. All sectoral indices, except Nifty Auto and FMCG, ended in the red. The broader market also felt the heat, with the Nifty Smallcap100 and Nifty Midcap100 indices declining by 1.02% and 0.94%, respectively.
The near-term scenario remains highly uncertain, with global trade tensions, FII outflows, and expensive valuations continuing to weigh on investor sentiment.
Ajit Mishra – SVP, Research, Religare Broking said that with no major domestic triggers, markets are primarily tracking global cues and facing renewed pressure due to weakness in US markets. Additionally, the downturn in key sectors like banking and IT, which had previously shown resilience, has worsened the sentiment.
“Given the current scenario, we maintain a negative outlook on the index and recommend a "sell on rise" strategy. However, individual stocks continue to present trading opportunities on both sides, and participants should adjust their focus accordingly,” added Mishra.