Sensex, Nifty extend losses amid sustained FII selling and weak global cues

Indian equity benchmarks extended losses on Friday, 31 October, as sustained selling by foreign institutional investors (FIIs) and weak global cues continued to weigh on investor sentiment. At around 11.15 a.m., the Sensex dropped 317.16 points, or 0.38 per cent, to 84,087.30, while the Nifty50 slipped 104 points, or 0.4 per cent, to 25,773.85.

Among the major laggards in the Nifty pack were NTPC, ETERNAL, Max Healthcare Institute, Cipla and InterGlobe Aviation, each declining up to 2 per cent.

Analysts attributed the ongoing decline primarily to persistent FII outflows. FIIs sold equities worth Rs 3,077.59 crore on Thursday, marking the second straight session of heavy selling after offloading Rs 2,540.16 crore on Wednesday.

Market experts said the consistent withdrawal of foreign funds has dampened investor confidence and increased volatility. Dr V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments, observed that renewed selling by FIIs is likely to act as a drag on the market in the near term.

Weak cues from global markets also exerted pressure on domestic equities. Key Asian indices, including Shanghai’s SSE Composite and Hong Kong’s Hang Seng, were trading lower, following a negative close on Wall Street overnight.

Commenting on the broader global sentiment, Ponmudi R, CEO of Enrich Money, said that markets across Asia were trading cautiously on Friday morning as investors assessed the US Federal Reserve’s latest policy signals and awaited upcoming economic data for clarity on the global outlook.

Ponmudi added that the mood remained uneven across the region, with traders staying guarded ahead of the weekend amid lingering volatility.

Adding to the uncertainty was the lack of clarity on developments between the United States and China following the meeting between US President Donald Trump and Chinese President Xi Jinping in South Korea.

Although both leaders expressed optimism about easing trade tensions, analysts pointed out that the talks did not result in a comprehensive agreement.

According to Dr Vijayakumar the summit outcome offered only a one-year truce in the US-China trade dispute rather than a long-term resolution, leaving markets somewhat disappointed despite a brief sense of relief.

From a technical standpoint, the market’s earlier bullish momentum appears to be weakening. Anand James, Chief Market Strategist at Geojit Financial Services, said what initially looked like a bullish continuation pattern is now developing into a topping formation.

He noted that the previous session’s decline to 25,886 signals underlying weakness, and while some initial recovery is possible, any upswing is expected to face resistance near 25,960. A sustained move above this level, he added, could delay or prevent a further fall towards the 25,700–25,400 zone.

With global markets remaining volatile and FIIs maintaining their selling pressure, analysts believe investors are likely to stay cautious in the near term, awaiting clearer signals on global economic trends and monetary policy direction before re-entering the market with confidence.