New Delhi [India]: The Indian stock markets remained under pressure on Tuesday as foreign institutional investors (FIIs) continued their selling spree, keeping overall market sentiment subdued.
The Nifty 50 index recorded a marginal drop of 42 points, trading at 23,338.70, while the BSE Sensex fell by 114 points to 77,196.86 at the time of reporting.
Market analysts attributed the decline to persistent FII selling but noted that this could present an opportunity for long-term investors to accumulate large-cap stocks at fair valuations.
“When FIIs turn buyers in India, which is inevitable, they will be buying the large-caps that they are currently selling. For patient investors, this is a good opportunity,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
He further added, “The relentless selling by FIIs in large caps has made their valuations fair, while the valuations of mid and small caps continue to be excessive. FIIs will certainly turn buyers in India, but that will happen only when the dollar index turns weak.”
Sectoral Performance and Stock Movements
The National Stock Exchange (NSE) sectoral indices reflected weak sentiment, with most sectors trading in the red. Nifty Bank, Nifty Auto, and Nifty Media saw declines, with Nifty Media falling by 1.72%. Other sectors such as Pharma, PSU Banks, and Realty were also under pressure, with Nifty Realty slipping by 2%.
Among individual stocks, Adani Enterprises emerged as the top gainer, rising over 2%, while Eicher Motors was the biggest loser, declining by more than 5%.
“The Nifty fell for a fourth consecutive day yesterday—the first time since mid-January—and closed at the critical 23,381 level. Market breadth was firmly negative, with nearly 90% of NSE500 stocks closing lower, indicating continued weakness. The next support for Nifty is between 23,164 – 23,287, while resistance is expected between 23,480 and 24,621,” said Akshay Chinchalkar, Head of Research at Axis Securities.
Despite the ongoing selling pressure, analysts remain optimistic about a future rebound, expecting a rally in large-cap stocks once FIIs resume their buying activity.