Sensex Slumps Amid Foreign Fund Exodus

For the fourth consecutive day, the benchmark BSE Sensex dropped nearly 425 points due to selling in sectors like auto, pharma, and banking, alongside continued foreign fund outflows. Investor concerns were influenced by FII selling, a falling rupee, and high valuations, affecting broader market performance.

The benchmark Sensex continued its downward trajectory, closing nearly 425 points lower on Friday amid sustained selling in auto, pharma, and banking shares. The 30-share BSE benchmark Sensex settled at 75,311.06, marking a 0.56% decline.

Foreign Institutional Investors offloaded equities worth Rs 3,311.55 crore, contributing to the slump even as Asian and European markets rallied. Prashanth Tapse, Senior VP at Mehta Equities Ltd, noted that high valuations and the threat of reciprocal US tariffs fueled investor concerns.

Investor anxiety was compounded by the Federal Open Market Committee's hawkish minutes signaling prolonged higher interest rates, further pressuring liquidity in emerging markets, explained Vinod Nair of Geojit Financial Services.