Stock market under pressure: Here's why Sensex, Nifty are falling today

Indian equity benchmarks extended their losing streak on Friday, dragged down by persistent foreign institutional investor (FII) selling and concerns over steep valuations. At last check, the 30-share BSE Sensex plummeted 653 points or 0.79 per cent to 81,531, while the NSE Nifty50 declined 204 points or 0.82 per cent to trade at 24,846.25. Broader market indices followed suit, with widespread losses across mid-cap and small-cap segments, signalling broad-based weakness.

Market experts pointed to continued offloading by FIIs as a dominant factor behind the selloff. According to VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, FIIs have pulled out Rs 11,572 crore over the last four sessions, creating downward pressure on frontline indices.

"The sustained FII outflows are acting as a major overhang, particularly at a time when valuations are stretched across segments," Vijayakumar said. He also noted that the small-cap space, which had been trading at elevated multiples, remains vulnerable to further correction.

Santosh Meena, Head of Research at Swastika Investmart Ltd, echoed similar concerns, stating that foreign investors remain wary of India’s premium valuations, even though macro and microeconomic indicators show resilience.

He added, "The ongoing earnings season has offered mixed cues. While there haven't been major disappointments, the results have failed to inspire confidence. Additionally, the uncertainty around the stalled US-India trade agreement adds to the cautious undertone."

The market's negative breadth and heightened volatility reflect growing apprehension among investors, especially as global headwinds and domestic valuation worries collide.

Nifty outlook

"Nifty experienced a pullback after facing strong selling pressure near the 25,250–25,260 resistance zone, resulting in the formation of a bearish candlestick pattern. On the hourly chart, the index slipped below its 50-EMA and closed beneath it, signalling short-term weakness. Overall, Nifty remains in a consolidation phase, with range-bound movement expected to persist in the near term. On the downside, the 24,900 level continues to serve as a key support; a decisive breach below this could trigger a sharper correction. On the flip side, a sustained breakout above the 25,260 resistance may pave the way for a fresh upward rally," according to Bajaj Broking Research.