MUMBAI — Indian equity markets tumbled more than 1 percent on Friday, pressured by sustained foreign institutional investor (FII) selling and weak global cues that kept investors firmly in risk-off mode.
The Sensex plunged 961 points, or 1.17 percent, to close at 81,287, while the Nifty fell 317.90 points, or 1.25 percent, to settle at 25,178.
Broader markets tracked the benchmark decline. The Nifty Midcap 100 slipped 1.10 percent, the NSE Smallcap 100 fell 1.10 percent, and the Nifty Next50 dropped 1.30 percent. Bank Nifty ended 1.08 percent lower.
Selling pressure was widespread across sectors, with only IT, media and consumer durables managing to close in positive territory. Realty stocks led the losses, with the Nifty Realty index falling 2.26 percent, followed by auto, down 1.86 percent. Metal and FMCG stocks each declined 1.69 percent.
Market breadth remained negative throughout the session, with 2,300 stocks declining against 1,515 advancing on the exchanges.
Volatility edged higher, with the India VIX hovering around 2.6 percent, reflecting heightened caution among traders as benchmarks stayed under pressure through the day.
Analysts attributed the weakness to a combination of global and domestic factors. Concerns over stalled U.S.-Iran nuclear talks have heightened fears of renewed escalation in the Middle East, dampening global risk appetite. At the same time, uncertainty surrounding artificial intelligence-related investments persists, despite selective buying in domestic IT stocks following sharp corrections earlier this month.
The rupee traded marginally weaker, slipping 0.02 percent to 90.98 against the U.S. dollar.
Technically, the Nifty breached the key 25,350 support level, sweeping through a zone with high open interest and nearly filling the gap created after the earlier U.S.-India tariff-led rally — a development analysts said signals a shift in near-term sentiment.
Interestingly, IT stocks offered relative stability during the broader market decline, posting modest gains even as the sector remains under structural pressure after correcting more than 20 percent in February.
Market participants said elevated volatility, geopolitical tensions and cautious positioning ahead of key macroeconomic triggers kept investors defensive. Analysts added that near-term direction will likely depend on global developments, foreign fund flows and upcoming economic data. (Source: IANS)
