The Indian stock markets opened on a weak note on Friday as global sentiment turned negative, weighed down by a sell-off in the United States and Asia.
The benchmark BSE Sensex dropped 532 points (0.64 per cent) to 82,778, while the NSE Nifty declined 162 points (0.64 per cent) to 25,347 as of 9:25 AM.
The broader indices mirrored the weakness, with the Nifty Midcap 100 down 0.89 per cent and the Nifty Smallcap 100 falling 1.26 per cent.
Despite the market-wide decline, a few stocks managed to remain in the green.
SBI Life Insurance, Trent, Apollo Hospitals, and ICICI Bank were among the top gainers, while TCS, Titan Company, Tata Consumer, and Shriram Finance led the list of losers.
Sectoral Pressure Across the Board
All major sectoral indices traded in the red, indicating widespread selling pressure. Nifty Consumer Durables emerged as the biggest loser, slipping 1.38 per cent, followed closely by declines in IT, auto, and realty sectors, each down over one per cent.
Market analysts attributed the decline to persistent foreign institutional investor (FII) short positions, which have outweighed buying by domestic institutional investors (DIIs).
According to experts, FIIs have been shifting funds to cheaper global markets, adding to the downward pressure on Indian equities.
Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that the success of FIIs’ strategy of sustained selling has encouraged further shorting.
“Short covering can lead to a trend reversal, but there are no immediate triggers for that in sight. FII selling has reduced the prices of fairly valued large caps, particularly in banking and pharmaceuticals, where growth prospects remain strong,” he said.
Despite the weak market tone, India Inc’s second-quarter FY26 results have been stronger than expected, showing a 14 per cent year-on-year rise in earnings, particularly among mid-cap companies.
Analysts believe that these earnings figures highlight resilience in key sectors despite global volatility.
Global Market Cues
Overnight, US markets closed sharply lower, with the Nasdaq falling 1.9 per cent, the S&P 500 declining 1.12 per cent, and the Dow Jones Industrial Average dropping 0.84 per cent.
The sell-off was driven by concerns over overvalued artificial intelligence (AI) stocks and fears of an economic slowdown.
Asian equities followed the negative trend. Japan’s Nikkei plunged 2.16 per cent, South Korea’s Kospi lost 2.57 per cent, and Hong Kong’s Hang Seng Index declined 0.98 per cent.
Mainland Chinese indices also traded lower, with both Shanghai and Shenzhen down 0.17 per cent each.
According to provisional data, on Thursday, FIIs sold equities worth ₹3,263 crore, while DIIs were net buyers of stocks worth ₹5,284 crore.
This divergence highlights continued foreign selling pressure despite domestic investor confidence.
Analysts suggest that the market may remain under pressure in the short term due to global uncertainties and FII activity.
However, domestic fundamentals and corporate earnings continue to support a medium-term recovery once external volatility stabilises.
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