The stock market has faced another round of declines, with both major indices – Sensex and Nifty trading in the red. As of 3:00 PM IST, the benchmark indices, Sensex and Nifty, are still in the red, marking another round of losses. The Sensex is down by 829.28 points, trading at 75,361.18 or 1.09%, while Nifty has fallen by 267.05 points to 22,825.15 or 1.16%.
Nifty Bank has also lost 0.66%, trading at Rs 48,049.30, with IT and metal stocks leading the losses.
The weakness in the market is not only limited to just one sector. Almost all major sectors are still in the red, with IT, metal, media, energy, and pharma stocks experiencing significant drops. The ongoing sell-off, driven by weak global cues, poor Q3 earnings, and overall uncertainty in the market, has been a concern for investors across the board.
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One of the key reasons for the market’s current weakness is the continued selling pressure from Foreign Portfolio Investors (FPIs). In January alone, FPIs pulled out a staggering Rs 69,000 crore from Indian markets.
Despite strong buying by domestic institutional investors (DIIs), who invested Rs 67,000 crore in the same period, the outflows from FPIs are overshadowing the market’s overall performance.
Global uncertainties and trade tensions
Global factors are also adding to the market’s struggles. Investors are anxious about the upcoming monetary policy decisions from the U.S. Federal Reserve.
In addition to this, the rising global trade tensions are heightening concerns. For instance, U.S. President Donald Trump recently threatened Colombia with 25% tariffs on all goods following the country’s refusal to allow two U.S. military planes carrying deported migrants to land.
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Trump announced that the tariffs would rise to 50% in a week unless Colombia agreed to accept the migrants without restrictions. However, the dispute was resolved after Colombia agreed to comply with U.S. demands, avoiding the tariffs.
Profit booking and pre-budget nerves
Investors are also showing signs of caution ahead of the Union Budget 2025, which is scheduled on February 1.
Further adding to this,
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