ET Market Watch: Three-day rout wipes out Rs 14 lakh crore as global risks and FII selling weigh on markets | The Economic Times Podcast

Hello and welcome to ET Market Watch, I am Neha Vashishth.Indian shares closed lower for the third straight session, continuing a sharp sell-off that has wiped out nearly ₹14 lakh crore of investor wealth in just three days.
As markets rebounded from the day’s lows, experts warn the rebound appears tactical and not structural.

Here’s what dragged the markets today.

Factor 1: The global jitters are returning
Asian markets fell for a third time after US President Donald Trump’s renewed threats over Greenland and new tariff rhetoric against Europe reignited fears of a global trade war.
Wall Street fell sharply overnight, the dollar weakened and investors fled to safe havens, pushing gold and silver to record highs.

The risky mood permeated Indian markets early on, adding to selling pressure.

Factor 2: Weak earnings weigh on sentiment
The ongoing earnings season offered little relief.
Disappointments from heavyweight names like Reliance Industries and ICICI Bank may have pushed valuations ahead of fundamentals.

The IT index fell more than 1%, with stocks like Persistent Systems falling despite earnings growth as brokers showed limited upside.

Factor 3: The rupee hits a record low
The Indian rupee fell to an all-time low, crossing the level of 91.29 against the dollar.
The decline, driven by global uncertainty, capital outflows and the lack of a US-India trade deal, increased pressure on stocks by fueling concerns about imported inflation and foreign flows.

Factor 4: FIIs continue to exit
Foreign institutional investors remained net sellers for the 11th straight session, dumping nearly ₹2,940 crore worth of equities on Tuesday.
Although domestic institutions stepped in as buyers, their support was not enough to stem the continued foreign outflows.

Factor 5: Technical damage visible
Technically, the benchmarks exceeded key support levels.
The Sensex fell as much as 1,056 points intraday, while the Nifty fell below 25,000 before making a partial recovery.

Analysts say sentiment will remain weak as long as Nifty remains below 25,500, with downside risks towards 25,000-24,700, although a pullback rally cannot be ruled out in the near term due to oversold conditions.

While markets have recovered from their lows, volatility remains high.

Investors are now closely monitoring global signals, earnings quality, FII flows and key technical levels to assess whether this correction deepens or stabilizes.

That’s all for ET Market Watch. Stay tuned to ETMarkets for more updates.