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Sensex, Nifty End Lower Amid FII Selling and High Oil Prices

The Indian equity market closed lower on Tuesday with Sensex falling 416 points and Nifty dropping 97 points. Persistent selling by foreign institutional investors and elevated crude oil prices weighed on market sentiment. Global cues were mixed as Asian indices fell while US futures showed marginal gains. Market expert VK Vijayakumar attributed FII outflows to the booming AI trade and warned of a possible correction in AI stocks.

Key Points: Sensex, Nifty Close in Red on FII Selling, High Oil Prices

  • Sensex falls 416 points to 76,886
  • Nifty drops 97 points to 23,995
  • Brent crude rises to $111.30
  • FII selling linked to AI trade momentum
3 min read

Sensex, Nifty close the day in red amid FII selling and elevated crude oil prices

Sensex drops 416 points, Nifty ends at 23,995 amid FII selling and elevated crude oil prices. Expert warns of AI stock bubble.

"The principal reason behind this underperformance is the booming AI trade, which began in 2025 and is continuing this year. - VK Vijayakumar"

New Delhi, April 28

The Indian equity market closed in the red on Tuesday as indices struggled to maintain momentum against a backdrop of global volatility and persistent selling by foreign investors.

The BSE Sensex finished the trading session at 76,886.91 points, registering a decline of 416.72 points or 0.54 per cent. Similarly, the NSE Nifty 50 ended the day at 23,995.70 points, down by 97.00 points or 0.40 per cent.

As of filing this report, Brent Crude is currently trading at USD 111.30, reflecting a positive movement of USD 3.07 or 2.84 per cent. In contrast, Gold has experienced a decline, priced at USD 4,611.21 with a drop of USD 71.95, representing a 1.54 per cent decrease. Crude Oil shows the most significant percentage gain, trading at USD 99.65 after an increase of USD 3.28, or 3.40 per cent.

Global cues also weighed on domestic sentiment as several major Asian indices faced significant pressure. Japan's Nikkei 225 plummeted by 1.16 per cent, shedding over 696 points, while the Hang Seng in Hong Kong dropped 1.09 per cent.

In contrast, US market futures showed marginal gains, with Dow Jones Futures up 0.35 per cent and the Nasdaq slightly higher by 0.20 per cent.

At the opening bell, the share markets in the country began on a cautious note, with benchmark indices witnessing marginal declines amid continued foreign institutional investor (FII) selling, elevated crude oil prices, and ongoing geopolitical uncertainty in West Asia.

The Nifty 50 index opened at 24,049.90, declining by 42.80 points or 0.18 per cent, while the BSE Sensex started the session at 77,094.79, down by 208.84 points or 0.27 per cent.

Market experts attributed the subdued sentiment to persistent global factors and shifting investor preferences.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, highlighted the underlying reasons behind sustained FII outflows from India.

"The principal reason behind this underperformance is the booming AI trade, which began in 2025 and is continuing this year. A few AI stocks are driving this AI trade globally. Bulk of portfolio flows are hot money that chase momentum. So long as this market momentum continues, FIIs are likely to continue selling," he said.

He further noted, "But dominant market trends are temporary. There are strong views that there is a bubble in AI stocks. So there can be a correction in this segment at any time. That can be a trigger for the resumption of portfolio flows into India. Investors should watch out for this trend. When that happens, fairly-valued large caps will outperform. Till then, the mid and small caps which don't have significant FII exposure may continue to outperform."

- ANI

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Reader Comments

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Priya S
Honestly, I'm a bit relieved. Markets have been overvalued for a while, and this correction was overdue. FIIs selling is not the end of the world—domestic investors and DIIs have stepped up well. Crude oil prices are a genuine concern though, especially with the West Asia situation. Let's see how the government manages subsidies and inflation. Gold dipping is interesting—maybe people are selling to book profits? 🤔
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Vikram M
FII selling is a double-edged sword. On one hand, it pulls markets down, but on the other, for long-term investors like me, it's a golden opportunity to buy quality stocks at a discount. The AI trade in the US is definitely a bubble waiting to burst. When that happens, money will come back to India. Mid and small caps are doing well—so not all is doom and gloom. Just don't panic-sell! 💪
J
James A
As someone who follows global markets from the US, I see a lot of parallels. FIIs pulling out of India because of the AI frenzy is short-sighted in my opinion. India's demographic dividend and reforms like PLI schemes are for the long haul. Crude at $111 is concerning, but not as bad as 2022 levels. I'm actually buying more Indian ETFs during this dip. Cheers to value investing! 📈
S
Sarah B
I find it funny how every time markets dip, everyone blames FIIs. But look at the broader picture—corporate earnings have been decent, GST collections are solid, and the economy is growing above 6%. The volatility is temporary. What concerns me more is the geopolitical uncertainty and its impact on oil supply. Hopefully, diplomatic efforts reduce tensions soon. Stay invested, folks. 🌏

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