Today's Stock Market Update: The Sensex stands at 80,250, while the Nifty 50 is listed at 24,545.
The Indian stock market is grappling with a period of volatility, with the Sensex nearing the 80,250 mark and the Nifty 50 recording a second consecutive day of significant losses. The expiry of futures and options contracts this month is adding to the market's turbulence.
The focus is shifting towards defensive sectors such as FMCG and pharmaceuticals, which tend to perform better during uncertain times. However, the advice from experts is one of caution, suggesting refraining from aggressive buying until clarity emerges on global trade policies and foreign investor flows.
The U.S. tariffs on certain Indian exports have had a direct impact on domestic financial stability, particularly affecting export-oriented companies and Small and Medium Enterprises (SME) IPOs. The GIFT Nifty is trading at a discount to its previous close, indicating a weak domestic opening.
The ongoing tariff issue and continued foreign investor selling are contributing to the Indian stock market's sharp declines. The Sensex has dropped nearly 600 points, and the Nifty 50 has fallen below 24,550. This month, foreign institutional investors have withdrawn nearly 2.7 billion dollars from Indian equities, marking the largest withdrawal since February.
The coming sessions are expected to remain volatile as global uncertainties persist, with investors choosing to tread carefully until the situation stabilizes. The weakness in Indian equities mirrors trends across other Asian markets, including China, Japan, and South Korea.
Losses are spreading across nearly every sector of the Indian market, including banks, the IT sector, real estate, the power sector stocks, and the SME IPO market. Out of 121 SME companies that went public in 2025, 30 are trading at losses of up to 58 percent. In contrast, only nine companies in the mainboard IPO space are currently below their listing price.
The recent declines in the Indian stock market underline the fragility of the current rally, as it had recently touched record highs. The current environment is marked by selective opportunities, with some analysts recommending low-priced stocks under 100 rupees that are relatively insulated from tariff shocks.
Despite the ongoing challenges, it is essential to maintain a balanced perspective. The search results do not provide the names of the main representatives of foreign institutions who facilitated one of the highest monthly capital outflows from Indian equities in August 2022. The coming days will be critical in determining the market's direction, and investors are urged to stay informed and make decisions based on reliable information.
