Key points
- Benchmark indices fell for a fifth day, with the Sensex closing at 81,160 (‑556 pts) and the Nifty at 24,891 (‑166 pts).
- Broad-based selling saw 26 of 30 Sensex stocks close lower; Midcap and Smallcap indices also declined around 0.6% each.
- IT stocks were worst hit after a proposed US H-1B visa fee hike, with the Nifty IT index down 1.27%; TCS fell 2.55% to a multi-year low.
- Realty (‑1.65%) and Auto (‑0.92%) were other top sectoral losers, while Metals edged higher.
- Rupee weakened 22 paise to 88.31 against the US dollar; Brent crude firmed to $67.12/barrel.
- FIIs sold shares worth ₹2,425 crore on Wednesday, extending a run of outflows.
- Top losers included Trent, PowerGrid, Tata Motors, and TCS, while BEL and Hero MotoCorp were among the few gainers.
New Delhi: Indian markets fell for a fifth straight session on Thursday, with the Sensex closing down 556 points at 81,160 and the Nifty 50 shedding 166 points to finish at 24,891, as sustained FII selling, weak global cues, and jitters over a proposed US H‑1B visa fee hike hit sentiment hard. Broad-based selling dragged IT, realty, and auto indices lower, while a weak rupee and firm crude oil prices added to investor concerns.
The day’s trend
Selling pressure intensified in the last hour of trade, pushing benchmarks to their day’s low as investors booked profits amid a cautious global backdrop and persistent foreign fund outflows. The market breadth was negative, with 2,124 stocks declining on the NSE against 912 advancers, reflecting widespread risk aversion.
Five factors driving the decline
- US H‑1B Visa Fee Jitters: A proposed hike in US visa fees sparked a sharp sell-off in IT stocks, a key export-oriented sector. TCS fell 2.55% to ₹2,958, its lowest in about three years, while other frontline IT names also faced pressure.
- Sustained FII Outflows: Foreign Institutional Investors (FIIs) have been net sellers, offloading shares worth ₹2,425 crore on Wednesday, a trend that has weighed on market sentiment and liquidity.
- Weak Rupee & Firm Crude: The rupee weakened to 88.31 against the dollar, making imports costlier, while Brent crude firmed to $67.12/barrel, stoking inflation concerns.
- Gloomy Global Cues: Asian markets were mostly lower, tracking a pause in the AI-driven rally on Wall Street. Hong Kong’s Hang Seng slipped and US stock futures were weak, offering no support to domestic equities.
- Trade Policy Uncertainty: Lack of clarity on the near-term path of US-India trade relations has kept foreign investors on the sidelines, awaiting more concrete policy signals.
Sectoral performance
Barring the Nifty Metal index, which gained 0.22% on the back of select commodity price movements, all other sectors ended in the red. Nifty Realty was the top loser, down 1.65% for a second straight day, followed by Nifty IT (‑1.27%), Nifty Auto (‑0.92%), and Nifty Pharma (‑0.92%). Financials and consumer durables also saw significant declines.
Stock-specific action
Trent (‑3.61%), PowerGrid (‑3.10%), Tata Motors (‑2.64%), and TCS (‑2.55%) were the top losers on the Nifty 50. Other notable losers in the broader market included Tata Investment Corp (‑6%), Sudarshan Chemical (‑5.25%), Heritage Foods (‑5%), and Kalyan Jewellers (‑5%). On the upside, BEL gained 2.07% and Hero MotoCorp rose 1.51%, bucking the weak market trend.
What analysts are saying
Market experts pointed to cautious sentiment ahead of key US macroeconomic data and India’s H2FY26 borrowing calendar, expected later in the week. Technical analysts noted that the Nifty breaking below the psychological 25,000 mark has turned this level into a key resistance zone, with immediate support now seen at 24,850. A break below this could see the index test 24,600–24,500 levels, keeping the near-term outlook weak.
