Business · India Bureau
Sensex tumbles 765 points as bank stocks, FPI outflows weigh
India's key equity indices reversed course after a two-day rally, with the Sensex declining over 1 per cent amid selling pressure in banking stocks and continued foreign portfolio investor outflows.
LSN India ·
The Indian stock market extended losses during intraday trading, with the BSE's 30-share Sensex index shedding 765 points as investor sentiment turned cautious. The weakness also reflected in the broader NSE Nifty50 index, which mirrored the benchmark's declining trajectory following its recent two-day recovery period.
Banking sector equities emerged as a key drag on market performance, with major lenders experiencing significant selling pressure. The financial services segment's downturn contributed substantially to the overall market decline, offsetting gains in other sectors.
Foreign portfolio investors continued their net selling, adding to the bearish sentiment gripping domestic bourses. The combination of sector-specific weakness and overseas investor withdrawal created headwinds for the indices, reversing the positive momentum from the previous trading sessions.
The market decline underscored persistent concerns about macroeconomic conditions and valuation concerns that have prompted foreign investors to reassess their India exposure in recent weeks. Analysts noted that the reversal highlighted the market's sensitivity to shifts in global liquidity and domestic economic data.