MUMBAI, Nov 8
Indian equity benchmarks ended sharply lower on Friday, dragged down by heavy foreign institutional investor (FII) selling and weak global cues, even as domestic funds provided partial support.
The BSE Sensex plunged 633 points to close at 72,440, while the NSE Nifty dropped 185 points to 21,680, with banking, IT, and energy stocks bearing the brunt of the sell-off. According to provisional exchange data, FIIs sold shares worth ₹3,263 crore, reversing earlier inflows seen earlier in the week.
“The sell-off was largely technical and driven by global risk aversion following the US shutdown uncertainty and falling Asian markets,” said Meena Sharma, equity strategist at Axis Securities. “Domestic investors cushioned the fall but sentiment remains cautious.”
Sectoral pressure and global triggers
Banking, IT, and auto indices each fell more than 1%, while metal and FMCG stocks showed mild resilience. Weakness across Asian and European markets, coupled with a stronger dollar and rising US bond yields, kept sentiment muted.
The rupee closed slightly weaker at ₹83.42 per US dollar, while Brent crude prices hovered around $83.8 per barrel, reflecting global jitters.
Midcaps, smallcaps feel the heat
Broader markets mirrored the decline, with the Nifty Midcap 100 and Smallcap 100 shedding nearly 1%. Analysts said investors should brace for continued volatility next week amid global uncertainty and FII outflows.
“Domestic macros remain sound, but foreign selling linked to US fiscal events is dampening near-term momentum,” noted Deepak Jaswal, head of research at Prabhudas Lilladher.
