Indian equities remained under pressure on Friday, extending their losing streak for the third straight session as weak global cues and sustained foreign selling weighed on sentiment. The benchmark Sensex has tumbled over 1,300 points in just three sessions, while the Nifty 50 has slipped below the crucial 23,400 mark, raising concerns that the market may be headed for its weekly loss.

Continuing its downward trend, the BSE Sensex dropped as much as 640 points to touch an intraday low of 82,671, while the NSE Nifty declined 191 points to hit a low of 25,318.45 during the day. Overall, the Sensex is down 2,619 points, or 3.1%, from its October peak of 85,290, while the Nifty has shed 786 points from its record high of 26,104.20 reached on October 23, 2025.

Globally, investor sentiment has turned cautious amid stretched valuations and fading expectations of another U.S. Federal Reserve rate cut. The prolonged U.S. government shutdown, now the longest in history since it began on October 1, has further clouded economic visibility by delaying key data releases.

Back home, foreign institutional investors (FIIs) have remained net sellers, offloading ₹6,214 crore worth of equities so far in November. Since July, FIIs have pulled out nearly ₹1.4 lakh crore from the cash segment amid mixed earnings, rupee volatility, and uncertain global cues.

V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted, “A significant feature of the current market trend is that despite domestic institutional investors (DIIs) buying far more than FIIs are selling — ₹5,283 crore of DII buying versus ₹3,263 crore of FII selling yesterday — the market continues to drift lower.”

According to him, heavy shorting by FIIs has been overpowering domestic and retail buying. “Their strategy of sustained selling in India and shifting to cheaper markets has emboldened them to continue shorting,” he said, adding that short covering could trigger a rebound, though no immediate catalysts are visible.

He further suggested that this could be an opportunity for investors to rebalance portfolios in favour of undervalued large caps, particularly in banking and pharmaceuticals where growth prospects remain strong.

Technically, the Nifty 50 has breached key short-term supports — the 20-day moving average (25,630) and the super trend line near 25,372. A daily close below this level could confirm a short-term trend reversal, with potential downside toward 25,150, while resistance remains at 25,660.

Despite India’s solid macroeconomic fundamentals, markets remain vulnerable to global shocks. Uncertainty around a potential India–U.S. trade deal continues to weigh on sentiment, though U.S. President Donald Trump recently said discussions with Prime Minister Narendra Modi were progressing well and hinted at a possible visit next year.

For now, analysts expect near-term direction to depend largely on FII flows and global risk trends. Until clarity emerges, volatility is likely to persist, prompting traders to remain cautious and selective.

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