- Sensex drops 217 points to 74,115, while Nifty slips below 22,500.
- Power Grid, Hindustan Unilever among top gainers; Ola shares plunge 4%.
- FIIs sell ₹15,501.57 crore in March; investors await inflation data.
The Indian stock market ended lower on Monday, with both Sensex and Nifty closing in the red amid broader market weakness. The benchmark indices erased early gains as selling pressure intensified, particularly in midcap and smallcap stocks.
Sector-wise, FMCG and IT stocks saw some buying interest, with Power Grid, Hindustan Unilever, and Infosys emerging as top gainers. However, pressure in banking, auto, and infrastructure stocks, including IndusInd Bank, Titan, and L&T, led to the overall decline.
FIIs Sell-Off Deepens as Market Awaits Inflation Data
The ongoing FII outflows have been a key concern for the Indian equity market, with foreign investors pulling out over ₹15,000 crore in March alone. The selling pressure has been persistent since October, following record highs in Sensex and Nifty. This trend has raised concerns about liquidity and valuation sustainability, especially in high-growth sectors like technology and banking.
Adding to global uncertainties, China imposed retaliatory tariffs on U.S. and Canadian imports, which could impact market sentiment further. Meanwhile, investors are closely watching India’s upcoming CPI inflation data, set to be released later this week. January’s inflation had eased to 4.31%, the lowest in nearly six months, and a further decline could provide some relief to markets.
Despite broader market weakness, certain defensive stocks in FMCG and IT managed to hold ground. Hindustan Unilever, Infosys, and Nestlé India were among the top performers, benefiting from their relatively stable earnings outlook. On the flip side, small and midcap stocks saw sharp corrections as risk appetite weakened.
The regulatory scrutiny on Ola was another key development, as reports of trade certificate violations led to a 4% decline in the company’s stock price. This highlights the increased oversight in the EV sector, which has been under pressure due to evolving compliance norms. Investors remain cautious about regulatory risks affecting growth stocks.
The market’s direction in the coming days will largely depend on global cues, foreign investor activity, and domestic macroeconomic data. If inflation shows signs of further moderation, it could provide some support to equities. However, continued FII selling and global trade tensions remain key risks that could limit upside momentum.
“The stock market is a device for transferring money from the impatient to the patient.” – Warren Buffett
