Sensex Falls 300 Points, Nifty Slips Below 25,800 as FII Selling Weighs on Markets

Stock Market Today: Indian Benchmarks Extend Losses Amid Global Uncertainty

Mumbai, October 31 — The Indian equity market continued to witness a downward drift on Friday as both the Sensex and Nifty extended their losses, pressured by persistent FII outflows, weak global cues, and investor caution ahead of key international events.

At 12:30 p.m., the Sensex slipped 283.81 points, or 0.34 percent, to 84,120.65, while the Nifty 50 declined by 92.30 points, or 0.36 percent, to 25,785.55. The broader market sentiment remained subdued as traders opted for profit-booking and stayed cautious amid global market volatility.

Leading the pack of laggards were NTPC, ETERNAL, Max Healthcare Institute, Cipla, and InterGlobe Aviation, each shedding up to 2 percent.

FII Selling Continues to Weigh on Market Sentiment

One of the major reasons behind the market’s weakness was the continuous selling by Foreign Institutional Investors (FIIs). According to stock exchange data, FIIs offloaded equities worth ₹3,077.59 crore on Thursday, marking the second consecutive session of net outflows after pulling out ₹2,540.16 crore on Wednesday.

Market experts believe that this sustained withdrawal by overseas investors is keeping the market under pressure.

“Renewed selling by FIIs is likely to be a drag on the market in the near term,”
said Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments.

Analysts also pointed out that the FII pullout has been driven by rising U.S. bond yields, strengthening of the dollar, and mixed global growth signals, which have made emerging market equities less attractive for foreign investors.

Also Read : SEBI’s New Bank Nifty Rules May Trigger Outflows from HDFC & ICICI Bank

Weak Global Cues Add to Investor Anxiety

Asian markets too mirrored the cautious sentiment, with Shanghai’s SSE Composite Index and Hong Kong’s Hang Seng Index trading lower, reflecting concerns over global growth and geopolitical uncertainty.

In the U.S., major indices ended in negative territory on Thursday, as investors assessed the Federal Reserve’s latest policy stance and awaited key economic data for direction.

“Global markets are trading mixed this Friday morning, reflecting investor caution after U.S. indices closed lower overnight,”
said Ponmudi R, CEO of Enrich Money, in an interaction with PTI.
“Investors remain guarded as they assess the Fed’s signals and await fresh economic data for clarity on the global outlook.”

Across Asian markets, trading remained range-bound with investors hesitant to take fresh positions ahead of the weekend amid persistent global volatility.

US-China Trade Talks Fail to Lift Confidence

The market also reacted cautiously to developments on the US-China trade front. While U.S. President Donald Trump and Chinese President Xi Jinping concluded talks at a South Korean air base on a positive note, analysts said the discussions did not produce a comprehensive deal.

“The outcome of the recent Trump-Xi summit offered only a one-year truce in the US-China trade dispute rather than a comprehensive settlement,”
said V.K. Vijayakumar of Geojit Financial Services.
“Markets had expected stronger progress, and the limited nature of the agreement left investors somewhat disappointed.”

Nifty Faces Resistance Near 25,960

From a technical standpoint, market experts said that the Nifty is showing early signs of fatigue after a strong run in recent weeks.

“What was emerging as a bullish continuation pattern is now evolving into a topping formation,”
said Anand James, Chief Market Strategist at Geojit Financial Services.
“Yesterday’s dip extended to our downside marker of 25,886, indicating underlying weakness. While a short-term recovery cannot be ruled out, resistance is expected around 25,960. Unless the index sustains above that level, we may see further declines toward 25,700–25,400.”

He added that traders should remain selective and focus on defensive sectors such as FMCG, pharma, and IT, which may offer relative stability during market corrections.

Volatility Ahead Amid Global and Domestic Headwinds

Market participants expect volatility to remain high in the near term as both domestic and international factors continue to influence investor behavior.

Domestically, investors are watching corporate earnings announcements, auto sales data, and macroeconomic indicators, including manufacturing PMI and inflation numbers, for cues on the economic outlook.

Globally, attention remains on the Federal Reserve’s policy direction, geopolitical developments, and energy prices, all of which could sway sentiment.

Analysts believe that any sustained reversal in FII flows, combined with stabilizing global markets, could support recovery in Indian equities. Until then, investor caution and selective stock picking are likely to define market behavior.

Conclusion: Market in Wait-and-Watch Mode

In summary, the Sensex slipping over 300 points and the Nifty falling below 25,800 underscore the nervousness in the market amid global uncertainty and persistent foreign selling. While domestic fundamentals remain stable, external pressures and cautious investor behavior continue to weigh on short-term sentiment.

Market experts advise traders to stay vigilant, adopt risk-managed positions, and focus on quality stocks until clear global signals emerge.

• Nifty 50
• Bank Nifty
• Sensex