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Nifty, Sensex Log Second Weekly Drop as FII Selling Persists

Foreign outflows tied to firmer US rates are pressuring risk appetite.

Overview

  • The Nifty closed at 25,492 and the Sensex at 83,216, marking a second straight week of declines.
  • Foreign institutional investors were net sellers for the week, offloading about Rs 1,632 crore, while domestic institutions recorded Rs 16,677 crore in net inflows.
  • Breadth deteriorated as mid- and small-cap stocks lagged, with the Nifty 500 advance–decline ratio near 1:4.
  • PSU banks remained a relative bright spot on robust Q2 results, supporting a modest weekly gain in the Bank Nifty.
  • Near-term direction hinges on the Bihar election outcome and upcoming data on CPI, WPI, trade, bank credit and FX reserves, as global sentiment stays cautious with higher US yields and a stronger dollar.