Stock markets fall for third straight day as foreign fund outflows drag Sensex down 120 points
Indian equity markets extended losses for a third consecutive day as persistent foreign fund outflows dampened investor sentiment. The Sensex slipped 120 points while cautious trading reflected concerns over global cues and capital flows.
Indian stock markets ended lower for the third straight session as continued selling by foreign investors pressured benchmark indices. The Sensex closed down by 120 points, reflecting cautious sentiment amid concerns over global economic conditions and capital movement.
Market participants said foreign institutional investors continued to pare exposure to domestic equities, adding to pressure already created by mixed global cues. Persistent outflows have been a key factor behind recent weakness, as investors reassess risk amid expectations around global interest rates and growth prospects.
Sector wise, selling was seen across several index heavyweights, which limited any meaningful recovery during the session. Financials and select large cap stocks faced pressure, while defensive buying offered only limited support. Broader markets also remained subdued, with midcap and smallcap stocks trading in a narrow and cautious range.
Analysts noted that global markets have been volatile due to uncertainty around inflation trends, central bank policy signals and geopolitical developments. These factors have influenced risk appetite, leading to selective selling in emerging markets including India.
Despite the recent decline, domestic institutional investors provided some stability through selective buying, helping to prevent a sharper fall. However, their support was not enough to fully offset foreign selling during the session.
Market experts said near term direction will depend on the trajectory of foreign fund flows, global market movements and upcoming economic data. Any clarity on global monetary policy or signs of stabilisation in overseas markets could help improve sentiment.
For now, traders remain cautious and are focusing on stock specific opportunities while keeping an eye on broader cues. With markets under pressure for the third day, investors are expected to stay selective and monitor developments closely in the coming sessions.
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