Mumbai (Maharashtra): The Indian stock markets continue to struggle under bearish pressure as persistent selling by foreign investors and weak corporate earnings weigh on investor sentiment.
The Nifty 50 index opened with a 119-point drop (0.52%) at 22,809.90 points, while the BSE Sensex declined by 297.80 points (0.39%), opening at 75,641.41 points.
Market experts attribute the downturn to consistent Foreign Portfolio Investor (FPI) selling, driven by concerns over lackluster corporate earnings.
Ajay Bagga, Banking and Market Expert, explained the situation, stating, “FPI selling remains an issue for Indian markets. This will not reverse till a durable recovery in corporate earnings momentum is seen or till markets fall much more to make valuations compelling. Looking at a FY2026 Nifty EPS of Rs 1160 and FY2027 Nifty EPS of Rs 1350 odd, present valuations still remain challenging unless corporate earnings start beating estimates. That may be a few months away. Hence, the FPI selling continues to pose challenges to Indian markets for now.”
Sectoral Performance
- Nifty Realty declined by over 2%
- Nifty Auto dropped 1.72%
- Nifty PSU Bank fell 1.48%
Indian Markets Underperforming Global Peers
The Indian stock market has underperformed in 2024. The Nifty 50 has delivered a negative return of 3.4%, compared to the 4.19% gain in the S&P 500 and 11.7% gain in European markets. The broader market is experiencing even steeper declines:
- Midcaps have fallen by 9.6%
- Smallcaps have dropped by 22%
Sunil Gurjar, SEBI-registered Research Analyst and Founder of Alphamojo Financial Services, warned of further downside risks. He noted, “India’s benchmark stock index, the Nifty 50, has fallen approximately 13% since reaching its all-time high on September 27th. This decline has persisted throughout the past few months, with the index recording losses each month since October. It is currently trading around a strong support level; a breakdown below 22,800 would further signal strong downward momentum.”
Global Market Trends
While Indian markets struggle, other Asian indices showed resilience:
- Taiwan Weighted Index and Jakarta Composite Index gained over 1%
- Hang Seng rose 0.38%
- Nikkei 225 edged up 0.04%
- South Korea’s Kospi climbed 0.72%
The current market trend highlights growing investor concerns over earnings growth and foreign outflows. Analysts suggest that a turnaround could come only when corporate earnings show sustained improvement.