Markets extend losses on FII selling, tech stocks drag

Equity markets deepened their losses in Monday afternoon trade, with the Sensex falling 499.19 points or 0.66 per cent to 75,691.27 and the Nifty declining 158.10 points or 0.68 per cent to 22,934.10, as foreign institutional investors continued their selling spree.

The broader market witnessed significant selling pressure, with the Nifty Next 50 dropping 1.64 per cent to 61,467.35 and the Nifty 500 declining 1.38 per cent to 21,025.40. The market breadth remained heavily negative, with 3,472 stocks declining against 524 advances on the BSE.

Technology stocks led the downturn, with Power Grid emerging as the top loser, falling 3.06 per cent. Other major losers included Tech Mahindra (-2.87 per cent), Wipro (-2.61 per cent), HCL Tech (-2.42 per cent), and Tata Motors (-2.31 per cent). The sell-off intensified as 591 stocks hit their lower circuit limits, while 452 stocks touched their 52-week lows.

Banking and financial services sectors showed relative stability, with the Nifty Bank and Nifty Financial Services indices declining marginally by 0.16 per cent and 0.18 per cent, respectively. FMCG stocks provided some support to the market, with Britannia Industries leading the gainers, up 1.86 per cent, followed by ICICI Bank (+1.64 per cent), State Bank of India (+1.27 per cent), Hindustan Unilever (+1.01 per cent), and Trent (+0.83 per cent).

The market sentiment remained cautious as foreign portfolio investors have offloaded ₹69,000 crore worth of Indian equities in January so far. Traders are closely monitoring the upcoming Federal Reserve policy meeting and the Union Budget for directional cues.

Technical indicators suggest immediate support for Nifty at 22,800, while the index faces resistance at the psychological level of 23,000. Selling pressure was evident across the market spectrum, with only 141 stocks hitting their upper circuit limits, compared to 591 stocks touching lower circuits.

Trading activity remained broad-based with 4,136 stocks being traded on the BSE, while 140 stocks remained unchanged. Market participants continue to assess the impact of potential US trade policies and persistent FII outflows on Indian equities.