Sensex, Nifty gave up early gains to trade flat as worries over sustained foreign outflows overshadowed relief from easing geopolitical concerns.
Stock market today news: Sensex, Nifty see profit booking in trade.
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The equity benchmark indices Sensex and Nifty gave up early gains to settle lower on Friday, tracking sustained selling by foreign institutional investors.
The Sensex opened on a positive note at 82,335.94 and climbed to a day’s high of 82,516.27 in early trade. However, profit-booking at higher levels dragged the index into negative territory, and it settled lower at 81,537.70, down 769.66 points or 0.94 percent.
The broader Nifty also pared gains and slipped below 200-DMA to 25,048.65, down 241.25 points or 0.95 percent. During the session, the index moved between a high of 25,347.95 and a low of 25,025.30.
ETERNAL, InterGlobe Aviation and SBI Life Insurance Company were among the major laggards in the Nifty50 pack, declining up to 3 percent, while Dr. Reddy’s Laboratories and Hindalco Industries, advanced up to 3 percent. Market breadth remained negative as about 1630 shares advanced, 1729 shares declined, and 165 shares unchanged.
Key factors behind market decline
1) FII outflows: Persistent foreign fund outflows continued to weigh on investor sentiment. The foreign institutional investors offloaded equities worth Rs 2,549.80 crore on Thursday, marking the 13th consecutive session of net selling in January, so far. FIIs were net buyers only on January 2 this month.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noted “the FII stance towards India will be determined by the trend in India’s corporate earnings. Higher earnings growth alone can ensure sustained buying by FIIs since they have the option to invest in other markets where valuations are cheaper and earnings are better. Since earnings growth is sometime away and the FII selling strategy is expected to continue, preempting any healthy rally, the market is heavily net short. FIIs are adding to the short positions on every rally triggered by some positive news. The broader market, where FII presence is limited, is likely to witness action in response to Q3 results.”
2) Tepid quarterly earnings: Index heavyweights also added to pressure on the market. Weak results from companies such as ICICI Bank and HCL Technologies dampened sentiment
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3) Crude rises: Rising crude oil prices further capped gains. Brent crude, the global oil benchmark, rose 0.8 percent to USD 64.57 per barrel. Higher crude prices tend to impact India by widening the trade deficit and stoking inflation concerns, which can weigh on equities.
Here is a clear, coherent rewrite that tightens the geopolitical narrative and improves flow while preserving the meaning:
4) Geopolitical concerns: On Thursday, benchmark indices closed about 0.5 percent higher, ending a three-session losing streak. The rebound followed signals from US President Donald Trump that eased near-term geopolitical tensions, as he softened his stance on proposed tariffs against European countries and ruled out the use of force to seize Greenland.
However, despite the recovery, the indices remain down nearly 1.5 percent for the week so far. Market weakness persists as investors and policymakers assess the longer-term geopolitical implications of recent events. While Trump’s pullback reduced the immediate risk to Europe’s economic and political sovereignty, it has also triggered deeper concerns about the reliability of transatlantic relations.
According to Reuters, Trump’s earlier threats have shaken Europe’s confidence in its traditional partnership with the United States. EU officials and leaders acknowledged that relations have suffered significant strain.
5) Selling in Adani shares: A huge selling pressure was seen in Adani Group stocks after a report that the US Securities and Exchange Commission has asked a US court for permission to personally email summons to billionaire Gautam Adani and group executive Sagar Adani over alleged fraud and a $265-million bribery scheme.
6) Selling in bank shares: Bank Nifty snapped its previous session gains, to decline up to 1 percent amid broad-based selling in the domestic markets. Punjab National Bank and Yes Bank were among the key laggards in the index.
7) Rupee hits record low: The rupee slumped 41 paise to hit a record low of 91.99 against the US dollar in intraday trade on Friday, as persistent foreign fund outflows and a volatile geopolitical situation kept investors cautious. Forex traders said the intervention from the Reserve Bank of India is helping smooth volatility to some extent, but is not reversing the overall negative trend for the domestic unit. Moreover, for the currency, the pending trade agreement with the US remains a key stabilising factor. Until the geopolitical risk eases and the trade deal materialises, the rupee is likely to remain vulnerable to external shocks, they said. At the interbank foreign exchange, the rupee opened at 91.45 against the US dollar. In the initial trade, it touched an early high of 91.41 but soon pared the gains, hitting a record low of 91.99, registering a 41-paise fall from its previous close.
Technical outlook
Ruchit Jain, Vice President at Motilal Oswal Financial Services, said “the short term trend for the markets is negative as the Nifty index has been forming a lower top lower bottom structure, and the recent sell off has also seen significant negative market breadth. The immediate resistance for Nifty has shifted lower to 25,400 and till the index continues to trade below the same, we could see a continuation of the downtrend trend. Traders are advised to stay cautious until we see any signs of trend reversal.”
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