NewsStocksSensex, Nifty Open 0.5% Lower Amid FII Selling and Global Weakness; India VIX Surges 6%Sensex, Nifty Open 0.5% Lower Amid FII Selling and Global Weakness; India VIX Surges 6%
Indian benchmark indices opened 0.5% lower with Sensex at 83,175 and Nifty at 25,564, driven by FII selling worth over ₹4,300 crores and weak global cues. India VIX surged 6% indicating heightened volatility, while technical analysts identified 25,600-25,500 as crucial Nifty support levels. Mixed sectoral performance saw IT stocks under pressure while banking names held relatively steady.
*this image is generated using AI for illustrative purposes only.
Indian equity benchmark indices opened sharply lower on Monday, with BSE Sensex and NSE Nifty losing about 0.5% each, extending the recent choppy trend. Weak global cues, persistent foreign fund outflows, and geopolitical uncertainty weighed heavily on market sentiment as investors remained cautious at the start of the week.
Market Performance at Opening
The key market metrics at 09:28 am reflected broad-based weakness across Indian equities:
| Index/Metric: | Level/Change |
|---|---|
| Sensex: | 83,175 (down ~400 points) |
| Nifty: | 25,564 (down 0.5%) |
| India VIX: | Up 6% |
| Market Breadth: | Negative (declines outpacing advances) |
The volatility spike was particularly notable, with India VIX jumping over 6%, underlining rising nervousness among market participants. This cautious opening came despite the benchmarks ending marginally higher in a volatile session on Friday.
Technical Analysis and Key Levels
Technical analysts have flagged critical support and resistance zones for the Nifty in the near term. The 25,600-25,500 zone has emerged as crucial support, with analysts warning that a sustained break below this band could open the door to deeper corrections. On the upside, any recovery is likely to face stiff resistance near the 25,900-26,000 levels.
Shrikant Chouhan of Kotak Securities noted that "the current market formation is volatile and non-directional, and this is likely to continue in the near future." He advised traders to reduce weak long positions at resistance levels given the uncertain market environment.
Sectoral Performance and Banking Outlook
Early trade showed mixed sectoral performance, with IT stocks coming under particular pressure. Wipro led the decline among technology names, while select banking and consumption stocks witnessed some buying interest. Bank Nifty held relatively better compared to the broader market, supported by strength in heavyweight lenders.
However, analysts cautioned that a slip below 59,500 for Bank Nifty could make the current uptrend vulnerable to further correction.
Foreign Investment Flows and Global Factors
Institutional flows continued to be a key market overhang, with significant selling pressure from foreign investors:
| Flow Type: | Amount (Friday) |
|---|---|
| FII Sales: | Over ₹4,300.00 crores |
| DII Status: | Net buyers |
Global cues remained unsupportive, with Asian equities trading lower amid fresh geopolitical jitters. US markets had ended lower on Friday ahead of a long weekend as investors stayed cautious at the start of the earnings season. Oil prices eased, offering limited relief to market sentiment.
Market Outlook and Expert Views
VK Vijayakumar of Geojit Investments warned of heightened uncertainty ahead, suggesting that markets could remain volatile in the near term as geopolitical and geoeconomic developments unfold. He highlighted that the increasing use of tariffs as a policy tool could weigh on global trade sentiment.
Despite the near-term challenges, Vijayakumar suggested that long-term investors may use sharp market swings to selectively accumulate high-quality largecap stocks at reasonable valuations. With no immediate domestic triggers and global uncertainty lingering, market participants are likely to stay selective and range-focused in their approach.
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