India’s benchmark stock indices closed lower for the fifth consecutive session on Wednesday, marking their longest losing streak in more than six months. Persistent foreign investor outflows, weakness in the rupee, and heavy selling in IT stocks dragged the markets.
At the closing bell, the BSE Sensex fell 520.64 points, or 0.64%, to 81,194.99, while the NSE Nifty declined 152.10 points, or 0.61%, to 24,904.80. Over the last five trading days, both indices have slipped by more than 2%.
Sector Performance
- IT stocks led the decline, with the Nifty IT index plunging over 6% this week amid concerns over higher U.S. H-1B visa fees, which could hurt earnings of major Indian IT firms. Heavyweights such as Infosys, TCS, Wipro, and HCL Tech remained deep in the red.
- Realty and auto shares also witnessed strong selling pressure.
- Metal stocks, however, provided some support, preventing deeper losses.
Market Sentiment
Analysts said the combination of FII withdrawals, a record-weak rupee, and global headwinds have weighed heavily on sentiment. India VIX, the volatility index known as the “fear gauge,” has surged nearly 9% over the past week, reflecting heightened nervousness.
Hariprasad K, Founder of Livelong Wealth, noted that fears of slowing IT earnings have amplified the sell-off.
Despite the downturn, some experts advised investors to stay patient. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said reforms and India’s growth prospects remain intact:
“This is the right time for investors to continue accumulating high-quality stocks. Patience is the key.”
Technical View
On the charts, the Nifty has shown four consecutive lower closes with a visible pattern of lower highs. Market experts say the 25,000 level now stands as a critical support for sustaining the bullish structure. Derivatives data shows call writers tightening positions at current levels while put writers shift lower, signaling a possible consolidation phase ahead.
