Indian benchmark indices, Sensex and Nifty, opened lower on Monday, continuing their downward trend amid persistent foreign fund outflows and concerns over slowing corporate earnings.However, they recover to settle at the neutral point.
Foreign Portfolio Investors (FPIs) have continued their selling spree, offloading equities worth ?4,294.69 crore on Friday, as per exchange data. The total FPI outflow in 2025 has neared ?1 lakh crore, with ?99,299 crore withdrawn so far. This includes ?21,272 crore in the first two weeks of February, following a net outflow of ?78,027 crore in January. Global tensions, exacerbated by US-imposed tariffs, have further fueled investor caution.
Despite the weakness in Indian equities, major Asian markets, including Seoul, Tokyo, Shanghai, and Hong Kong, traded in the green. Meanwhile, Wall Street closed mostly lower on Friday.
Indian markets have underperformed this year, with Nifty yielding negative 3.4% returns compared to S&P 500’s 4.19% and Europe’s 11.7%. According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, corporate earnings growth of just 7% in Q3 does not justify high valuations, prompting relentless FII selling. A strengthening US dollar has further pressured the market.
Brent crude traded marginally higher at $74.78 per barrel. In the past eight sessions, Sensex has fallen 2,644.6 points (3.36%), while Nifty has lost 810 points (3.41%).
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