Business

Sensex, Nifty Fall Nearly 3% In Volatile Week As Foreign Outflows Rise

Domestic equity benchmarks BSE Sensex and Nifty 50 declined nearly three per cent during a volatile trading week as persistent foreign fund outflows and escalating geopolitical tensions in the Middle East weighed on investor sentiment.

By the end of the week, the Sensex closed at 78,918.90 compared with 81,287.19 recorded the previous Friday, while the Nifty settled at 24,450.45 against the earlier closing of 25,178.65.

The decline reflected growing caution among investors amid global uncertainty and rising energy prices.

Foreign institutional investors remained net sellers during the week, withdrawing more than ₹23,000 crore from Indian equity markets.

The continued outflows were part of a broader global trend of risk aversion, with investors shifting funds towards safer assets due to geopolitical concerns.

However, domestic institutional investors helped cushion the downside as steady inflows through systematic investment plans (SIPs) and strong domestic liquidity absorbed much of the selling pressure.

Market sentiment was further affected by rising tensions in the Middle East, which pushed global crude oil prices higher.

Brent Crude moved closer to $86 per barrel during the week, raising concerns about inflationary pressures and the potential impact on economic growth.

Higher energy prices raise input costs for companies and add uncertainty to financial markets.

Broader markets also stayed under pressure, with the BSE Midcap Index and BSE Smallcap Index falling about three per cent during the week.

Most sectors ended lower, especially realty, oil and gas, banking, auto and consumer durables.

According to Vinit Bolinjkar of Ventura Securities, markets are witnessing a tug-of-war between global risk aversion and domestic resilience.

Meanwhile, the India VIX jumped over 11 per cent, indicating rising investor caution.

Also Read: Crude Oil Prices Surge Above $90 As Middle East Tensions Escalate

Anamika Agarwala

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