The Sensex has experienced a significant decline, dropping 2,200 points over the last four trading sessions. This downturn is primarily attributed to escalating tensions in the Gulf region, particularly between the US and Iran, which have led to a spike in crude oil prices and negatively impacted investor sentiment.
Foreign Fund Outflows
- Foreign funds have net sold Indian stocks worth over Rs 3,900 crore.
- Total net outflow for the year has surpassed Rs 2.5 lakh crore, compared to Rs 1.7 lakh crore in 2025.
"The domestic market is expected to remain range-bound with a marginal negative bias in the near term amid persistent foreign portfolio investor (FPI) selling and ongoing uncertainty around global macro developments," said Siddhartha Khemka, of Motilal Oswal Financial Services.
Market Impact
- The Sensex closed at 74,267 points, down 508 points on the day.
- Investors have lost approximately Rs 4.3 lakh crore, with BSE's market capitalisation now at Rs 460.7 lakh crore.
Key Monitorables
- The Reserve Bank of India's upcoming policy meeting, concluding on June 5, is a critical event for investors.
- Textile stocks may gain attention following the government's cotton import duty waiver.
Currency and Commodity Movements
- The Indian rupee showed signs of stabilisation, closing 1 paise stronger at 94.99 to the dollar.
- Brent crude spiked over 5%, trading near $96/barrel.
| Metric | Value |
|---|---|
| Sensex Points Lost | 2,200 |
| Foreign Fund Outflow | Rs 3,900 crore |
| BSE Market Cap | Rs 460.7 lakh crore |
The next milestone for the market will be the RBI policy meeting on June 5, which investors hope will provide clarity and direction amid ongoing global uncertainties.
