Sensex, Nifty swing as FII outflows, tariff concerns weigh on sentiment

Indian equity benchmarks Sensex and Nifty turned volatile on Wednesday morning in Mumbai, as investors stayed cautious due to sustained FII outflows, tariff uncertainties, mixed global cues and crude price movements, leading to early losses despite selective buying support.

The 30-share BSE Sensex slipped 53.88 points to 83,573.11 in initial deals, while the NSE Nifty declined 16.55 points to 25,719.25.

Among Sensex constituents, Asian Paints, Tata Consultancy Services, Bajaj Finserv, InterGlobe Aviation, Sun Pharma and UltraTech Cement emerged as the top laggards. On the other hand, Tata Steel, Bharat Electronics, NTPC and Axis Bank provided some support to the index.

According to exchange data, foreign institutional investors (FIIs) sold equities worth ₹1,499.81 crore on Tuesday, while domestic institutional investors (DIIs) purchased shares worth ₹1,181.78 crore.

“Market sentiment remains guarded amid persistent FII selling, tariff-related uncertainties, geopolitical tensions and firm crude prices. While some Asian markets are showing strength, global cues remain mixed with US indices closing lower overnight,” said Ponmudi R, CEO of Enrich Money.

In Asian markets, South Korea’s Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite and Hong Kong’s Hang Seng were trading higher. US equities ended in the red on Tuesday.

“Elevated crude oil prices, continued foreign fund outflows and fragile global cues are likely to keep volatility elevated. Market sentiment will depend on whether Nifty can defend key support levels or decisively break above 26,100,” said Prashanth Tapse, Senior Vice President (Research), Mehta Equities Ltd.

Brent crude, the global oil benchmark, fell 0.49 per cent to USD 65.15 per barrel.

On Tuesday, the Sensex dropped 250.48 points, or 0.30 per cent, to close at 83,627.69, while the Nifty declined 57.95 points, or 0.22 per cent, to 25,732.30.