The Indian equity markets witnessed yet another day of weakness on September 25, closing lower for the fifth consecutive session—the longest losing streak in more than six months. A mix of foreign fund outflows, weakness in IT stocks, and global uncertainty weighed heavily on sentiment.
At closing, the Sensex dropped 520.64 points, or 0.64 percent, to end at 81,194.99, while the Nifty slipped 152.10 points, or 0.61 percent, to 24,904.80. In the broader market, 1,270 stocks advanced, 2,501 declined, and 111 remained unchanged, reflecting the bearish undertone.
Key Drivers of the Decline
The selloff was led by IT, realty, and auto stocks, though metal stocks offered some resilience. Market experts pointed to three factors behind the downtrend: sustained selling by foreign institutional investors (FIIs), a rupee hovering at record lows, and renewed pressure on IT earnings due to the U.S. H-1B visa fee hike.
The Nifty IT index alone has fallen over 6 percent this week, with frontline names such as Infosys, TCS, Wipro, and HCL Tech dragging the sector down. Adding to investor concerns, the India VIX surged nearly 9 percent over the past five sessions, signaling rising nervousness in the market.
Expert Insights on the Current Phase
According to Hariprasad K, Founder of Livelong Wealth, “Persistent FII outflows coupled with global uncertainties are weighing on the Indian market. The IT sector is especially vulnerable due to its dependence on U.S. policies.”
On the other hand, VK Vijayakumar, Chief Investment Strategist at Geojit, sees this as a buying opportunity for patient investors. He highlighted that India’s structural reforms and favorable interest rate environment could attract foreign money back in the future. “This is the right time for investors to continue accumulating high-quality stocks. Patience is the key,” he said.
Technical View and Support Levels
Analysts suggest that the Nifty’s broader uptrend has hit a pause, with a visible formation of lower highs on the daily chart. The 25,000 mark now stands as a crucial support zone for maintaining the bullish structure.
Dhupesh Dhameja of SAMCO Securities explained, “While call writers are building positions aggressively at current levels, put writers are stepping back and shifting to lower strikes, pointing to a possible consolidation phase.”
What Lies Ahead for Investors
Despite the ongoing weakness, many experts believe that the correction is healthy in the long run, as it allows valuations to normalize. With reforms in place and consumption-driven growth on the horizon, the Indian market still offers strong fundamentals. For now, caution and selective accumulation appear to be the best approach.
