Sensex drops 455 points amid foreign fund outflows, global trade and geopolitical concerns

Indian equity markets opened sharply lower on Monday as foreign institutional investors (FIIs) pulled out funds , while trade-related concerns and global geopolitical uncertainties dampened investor sentiment. The BSE Sensex fell 455.35 points to 83,120.89 , and the NSE Nifty 50 slipped 135.35 points to 25,547.95 in early trade.

Among the Sensex components, Bharat Electronics, Larsen & Toubro, Infosys, Reliance Industries, Power Grid, Adani Ports, and Bajaj Finance were the biggest losers. On the other hand, Hindustan Unilever, Asian Paints, Axis Bank, and State Bank of India saw modest gains.

According to exchange data, FIIs sold equities worth ₹3,769.31 crore on Friday , while domestic institutional investors (DIIs) bought shares worth ₹5,595.84 crore , partially offsetting the foreign outflows.

Analysts said multiple factors contributed to the market decline. Risk appetite remained low amid persistent FII outflows , worries over potential further US tariffs on Indian exports , and global geopolitical tensions , including unrest in Venezuela and Iran , and concerns over US policies related to Greenland.

“Indian equity markets have started the week on a cautious note as profit-booking across sectors , coupled with lingering global uncertainties , has kept investor sentiment defensive,” said Ponmudi R, CEO of Enrich Money , an online trading and wealth tech firm.

In the past five trading days, the Sensex has dropped 2,185.77 points (2.54%) , while the Nifty tumbled 645.25 points (2.45%) , reflecting the impact of both domestic and global pressures.

Global cues were mixed, with South Korea’s Kospi, Shanghai’s SSE Composite, and Hong Kong’s Hang Seng trading higher, while US markets ended in positive territory last Friday. However, India-specific outflows and trade worries dominated market sentiment, keeping equities under pressure.

Brent crude climbed 0.24% to USD 63.49 per barrel , adding to inflation concerns for the import-dependent economy. Continued foreign fund outflows, concerns over US trade policies, and geopolitical uncertainties combined to push Indian markets lower, highlighting the sensitivity of domestic equities to both global and domestic factors.