The selling pressure on Dalal Street intensified in Friday's session, sending benchmark indices further lower by over a percent in a week that has seen a near 3% cut on the Nifty 50 index, and a deeper gash for the broader markets.
The Sensex was down 687 points or 0.85 percent at 79,370, and the Nifty was down 261 points or 1.07 percent at 24,138.25 shortly after noon, with no respite in sight, a day after weekly expiry.
Today marked the fifth consecutive session of declines for the benchmarks, driven by lacklustre earnings, persistent FII outflows, and US election uncertainty.
Several factors are weighing heavy on the market sentiment, including relentless foreign institutional investor (FII) selling, disappointing Q2 earnings and global uncertainties, precipitating an extended selloff.
Foreign institutional investors (FIIs) continued to sell their positions, dampening market sentiment. On October 24, FIIs offloaded equities worth Rs 5,062 crore, adding to their near Rs 1 lakh crore selling spree in October.
The intensity of this selling comes amid heightened tensions in the Middle East, and a shift in EM investment flows towards China after the recent spate of stimulus announcements.
Coupled with concerns over urban consumption and demand growth, the FII exit seems to be rattling the stock market and making investors wary of a possible short-term drawdown.