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.

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

New Delhi [India], April 28 (ANI): 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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