Why is the Sensex falling consistently? 3 key factors to watch
Sensex fell 450 pts as FII selling, weak global cues, and tariff concerns spooked investors, keeping Nifty near 25,650 amid volatile market sentiment.
Why the Sensex is falling: Key factors to watch
The Indian stock market faced significant volatility on Wednesday, with the Sensex falling from its day’s high by around 450 points and the Nifty hovering near 25,650. Continuous selling by foreign institutional investors, along with unexpected tariff and geopolitical concerns, kept pressure on Indian equities, deepening the decline amid already fragile market sentiment.
1) Persistent FII Selling: Foreign institutional investors (FIIs) continued offloading equities, with sales worth ₹1,499.81 crore on Tuesday. This marked the seventh consecutive session of FII selling in January, keeping domestic markets under pressure.
2) Weak Global Cues: Negative signals from global markets also contributed to the decline. Wall Street futures were trading in red, hinting at a weak opening for US markets, which often influences investor sentiment in India.
3) Global Tariff Uncertainties: Ongoing uncertainties over global trade policies and tariffs added to investor caution, prompting profit booking and a risk-off approach in equities.
Overall, heavy FII outflows, soft international markets, and trade-related concerns combined to weigh on the Sensex and Nifty, driving today’s market fall.
