Sensex settles 100 pts lower, Nifty ends below 26,150: 3 key factors behind market decline

Stock Market Today: Sensex, Nifty decline amid profit booking. 

The benchmark equity indices Sensex and Nifty extended decline on Wednesday amid geopolitical tensions and sustained foreign fund outflows.

The Sensex settled 102.20 points or 0.12 percent lower at 84,961.14, while the broader Nifty slipped to 26,140.75, down 37.95 points or 0.14 percent.

Key factors behind market decline

1) Geopolitical tensions: Rising geopolitical risks and renewed tariff-related worries dampened investor confidence and capped risk appetite.

"Rising geopolitical tensions and fresh tariff-related concerns have triggered profit-booking at higher levels, keeping risk appetite in check. As a result, the market is expected to remain largely range-bound, with stock-specific and sector-led moves dominating trade rather than a broad-based directional trend," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.

2) FII selling: Foreign institutional investors (FIIs) sold equities worth Rs 107.63 crore on Tuesday, according to exchange data. Continued selling by overseas investors has been putting pressure on domestic equities by reducing liquidity and weighing on overall market sentiment.

3) Weak global cues: In Asian markets, Japan’s Nikkei 225 and Hong Kong’s Hang Seng were trading lower, reflecting cautious sentiment across global markets, which also weighed on Indian equities.

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