Indian equity markets opened on a weaker note on Monday as persistent selling by foreign portfolio investors (FPIs) and lacklustre corporate earnings continued to weigh on sentiment.
The Nifty 50 fell by 119 points, or 0.52 per cent, to 22,809.90, while the BSE Sensex dropped 297.80 points, or 0.39 per cent, to 75,641.41 in early trade.
Market analysts attributed the ongoing decline to continuous FPI outflows and disappointing earnings performance across key sectors.
"FPI selling remains an issue for Indian markets. This will not reverse till a durable recovery in corporate earnings momentum is seen or till markets fall much more to make valuations compelling. Looking at a FY2026 Nifty EPS of Rs 1160 and FY2027 Nifty EPS of Rs 1350 odd, present valuations still remain challenging unless corporate earnings start beating estimates. That may be a few months away. Hence the FPI selling continues to pose challenges to Indian markets for now," Banking and Market Expert, Ajay Bagga said.
Among sectoral indices, the Nifty Realty index led the decline with a fall of more than 2 per cent, while Nifty Auto and Nifty PSU Bank slipped 1.72 per cent and 1.48 per cent, respectively.
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The broader market also witnessed significant underperformance. While the Nifty 50 has delivered a negative return of 3.4 per cent this year, global peers have fared better, with the S&P 500 gaining 4.19 per cent and European markets surging 11.7 per cent.
Midcap stocks have declined by 9.6 per cent, while Smallcaps have dropped by 22 per cent.
"India's benchmark stock index, the Nifty 50, has fallen approximately 13% since reaching its all-time high on September 27th. This decline has persisted throughout the past few months, with the index recording losses each month since October. It is currently trading around a strong support level; a breakdown below 22,800 would further signal strong downward momentum," said SEBI Registered Research Analyst and Founder of Alphamojo Financial Services, Sunil Gurjar.
In contrast, other Asian markets displayed resilience. Taiwan's Taiwan Weighted Index and Indonesia's Jakarta Composite Index rose by over 1 per cent each.
Hong Kong's Hang Seng gained 0.38 per cent, Japan's Nikkei 225 edged up 0.04 per cent, while South Korea's Kospi advanced by 0.72 per cent.
Indian markets remain under pressure, with analysts suggesting that a turnaround is unlikely until corporate earnings improve or market valuations become more attractive to investors.
Also read: India inflation to average 4.8 pc in 2025 says report
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