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Indian Stocks Extend Slide as Foreign Selling Deepens, Nifty Drops Below 25,750

Pre-Fed caution plus a weakening rupee kept risk appetite low.

Overview

  • Benchmarks opened sharply lower on Tuesday, with the Sensex down about 700 points near 84,400 and the Nifty under 25,750 after Monday’s steep drop.
  • Monday’s sell-off erased roughly Rs 7–7.56 lakh crore in BSE market value as mid- and small-cap indices fell over 2 percent, highlighting fragile breadth.
  • Foreign portfolio investors were provisional net sellers of Rs 655.59 crore on Monday, taking 2025 equity outflows to about Rs 1.55 lakh crore, while domestic institutions bought Rs 2,542 crore.
  • The rupee hovered near 90 to the dollar and concern over global policy shifts, including this week’s US Fed decision and rising Japanese bond yields, pressured sentiment.
  • Heavy primary-market issuance was cited as a liquidity drain, and some reports pointed to potential new US tariffs on Indian rice as another factor weighing on risk-taking.