Sensex Falls 48 Points, Nifty Slips 95 Points on FII Outflow
Indian equity benchmarks ended a volatile session marginally lower on Thursday, with the Sensex falling 48 points and the Nifty slipping 95 points, as persistent foreign institutional investor (FII) outflows and elevated crude oil prices kept sentiment subdued. The decline came despite a mixed trend in Asian markets, where investors remained cautious ahead of key global economic data releases. Analysts say the selling pressure was largely driven by continued FII selling in Indian equities, which has been a dominant theme in October 2026.
The Sensex closed at 81,234.56, down 48 points or 0.06 per cent, while the Nifty ended at 24,876.30, down 95 points or 0.38 per cent. The broader market underperformed, with the Nifty Midcap 100 and Nifty Smallcap 100 indices falling over 1 per cent each. Sectorally, metal, realty, and PSU bank stocks were the biggest laggards, while IT and pharma stocks provided some support. FIIs sold equities worth ₹2,345 crore in the cash segment on Wednesday, according to provisional exchange data, extending their selling streak to a sixth consecutive session.
Crude oil prices remained a key concern for Indian markets, with Brent crude futures trading above $92 per barrel. Rising crude prices weigh on India's import bill, current account deficit, and inflation outlook, making it a critical variable for equity valuations. Analysts say that if crude oil prices sustain at these levels, it could put pressure on the Reserve Bank of India's monetary policy stance and corporate margins in oil marketing companies. The Indian rupee also weakened past 84.50 against the US dollar, adding to the cautious mood.
| Index | Closing Level | Change (Points) | Change (%) |
|---|---|---|---|
| Sensex | 81,234.56 | -48 | -0.06% |
| Nifty 50 | 24,876.30 | -95 | -0.38% |
| Nifty Midcap 100 | 58,432.10 | -620 | -1.05% |
| Nifty Smallcap 100 | 19,245.75 | -215 | -1.10% |
Market breadth remained negative, with 1,842 stocks declining on the BSE against 1,456 advancing. The volatility index, India VIX, rose 3.2 per cent to 14.56, indicating increased nervousness among traders. Foreign portfolio investors have withdrawn over ₹18,000 crore from Indian equities so far in October 2026, according to depository data, as rising US Treasury yields and a stronger dollar prompted a shift towards safer assets. Domestic institutional investors, however, remained net buyers, providing some cushion to the market.
"The market is likely to remain range-bound in the near term, with FII flows and crude oil prices being the key triggers. Investors should focus on quality large-cap stocks and avoid leveraged positions," analysts say.
Looking ahead, market participants will closely track the US Federal Reserve's policy meeting minutes, quarterly earnings from major Indian companies, and the trajectory of crude oil prices. Analysts say that a sustained fall in crude oil prices and a reversal in FII selling could provide relief to the Indian markets. Until then, volatility is expected to persist, with the Nifty likely to find support around the 24,700 level and resistance near 25,100.
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