Key Highlights
- Lower start: Nifty opened 76.75 points lower at 22,543.70, and Sensex fell 287.39 points to 72,192.89.
- Sector drag: Auto, cement, realty, media and healthcare fell up to 2.76%; IT rose over 1%.
- FII streak: Foreign investors sold over ₹10,148 crore on Wednesday, their fifth straight day of selling.
- DIIs outbought FIIs: Domestic institutions bought ₹11,271 crore, more than foreign outflows for the day.
- Big September exit: FIIs sold ₹45,536 crore through exchanges in September.
The new month brought no relief for Indian equities. Domestic benchmarks opened lower on Thursday as foreign investors continued to pull money out, with auto and cement stocks leading the losses.
Sensex opened at 72,192.89, down 287.39 points or 0.39%. Nifty began at 22,543.70, lower by 76.75 points or 0.34%.
How Far the Slide Has Gone
Based on Thursday's opening, Nifty closed Wednesday at about 22,620, down roughly 520 points, or about 2.2%, from last Friday's close of 23,140. Sensex has slipped from 73,895 to around 72,480 over the same period.
Sectors: IT Shines, Autos Slide
Nifty Auto, Cement, Realty, Media and Healthcare were the top laggards, falling up to 2.76% in early trade. Energy, metal and pharma indices also fell between 0.86% and 0.95%.
On the positive side, Nifty IT rose more than 1%, and Nifty Private Bank gained 0.60%.
Why It Matters: The September Scorecard
The scale of foreign selling over the past month is striking. FIIs sold equities worth ₹45,536 crore through exchanges in September, while investing ₹9,676 crore through the primary market, according to analysts. That still leaves a net outflow of roughly ₹35,860 crore for the month.
Analysts said sustained FII selling and rising US bond yields could keep largecap stocks under pressure in the near term.
A Shift in the Tug of War
There was one notable change on Wednesday. For the first time this week, domestic institutional investors bought more than foreign investors sold. DIIs purchased ₹11,271 crore against FII sales of over ₹10,148 crore, a net domestic inflow of about ₹1,100 crore.
On Tuesday, by contrast, DIIs had bought nearly ₹7,000 crore while FIIs sold nearly ₹10,000 crore. The stronger domestic buying suggests local institutions are increasingly stepping in at lower levels, in line with experts' view earlier this week that largecaps have reached attractive valuations.
Key Levels
| Level | |
|---|---|
| Immediate support | 22,500–22,550 |
| Resistance | 22,800–22,900 |
Support has moved lower again. On Wednesday, it was placed at 22,650–22,700; now it is 22,500–22,550. Analysts described the near-term structure as sideways to bearish. A sustained move above resistance could lift sentiment, while a break below support may keep selling pressure intact.
The Crude Trigger
Analysts pointed to crude oil as the key factor to watch. A fall in Brent crude below $98 a barrel could bring some relief. That is a meaningful drop from the $106-plus levels seen earlier this week, and would likely depend on progress in easing tensions around the Strait of Hormuz.
The Bottom Line
Foreign investors closed September with heavy selling and have started October the same way. Domestic institutions are absorbing more of that pressure, but a real turnaround may need a trigger from outside: lower crude prices or softer US yields.
With inputs from IANS.