Markets Slip as FIIs Exit & Volatility Returns — What Traders Should Watch Now

Market Closing

Indian equity markets ended the session on a weak note. The Sensex fell ~275 points and the Nifty 50 slipped below 25,800. Mid-cap and small-cap indices under-performed, hurting broader sentiment.

What Changed Today

• Foreign Selling + Global Uncertainty: Continued FII outflows and global macro uncertainty weighed heavily, reducing investor risk appetite.
• Weakness in Financials & Banks: Private banks and financial stocks led the losses, dragging down overall index performance.
• Broader Market Under-performance: Mid-cap and small-cap indices saw sharper declines than large-caps — indicating risk-off mood across segments.
• Some Defensive and Export Plays Saw Stability: Certain defensive or export-oriented stocks held up, as investors seek safer bets amid volatility.

What to Watch Ahead

• Keep an eye on FII flows — a reversal could spark market recovery
• Monitor global cues (interest rates, USD strength, global markets) — likely to influence domestic sentiment
• Track sectoral strength — exporters, defensives, quality mid-caps may outperform if volatility continues
• Watch for support levels — Nifty near 25,700–25,800 and Sensex’s support zone to see if they hold