Sensex, Nifty today: Why stock market is down for 3rd day; more selling ahead?

Fri Jan 10 08:30:00 UTC 2025: ## Indian Stock Market Suffers Third Consecutive Day of Losses

**Mumbai, India** – India’s benchmark indices, the Sensex and Nifty, continued their downward trend on Friday, marking their third consecutive day of losses. Despite a positive outlook from IT giant TCS, which saw its shares rise by 4.88%, selling pressure in banking stocks, Reliance Industries, Mahindra & Mahindra, and NTPC Ltd. dragged down the market.

The market breadth was significantly negative, with six stocks declining for every one that advanced. A total of 220 stocks hit their lower circuit limits, reflecting widespread investor anxiety. The India VIX volatility index climbed above 15, further indicating market fear.

Contributing to the negative sentiment was a weakening rupee and continued foreign institutional investor (FII) outflows, exceeding ₹15,164 crore in January alone (₹7170 crore on Thursday). A strengthening dollar index (up 0.08% to 109.26) exacerbated the situation. Analysts cited uncertainty surrounding potential actions by the US administration as another factor weighing on the market.

The Sensex closed down 161.87 points (0.21%) at 77,458.34, while the Nifty fell 77.95 points (0.33%) to 23,448.55. Mid-cap and small-cap indices suffered even steeper declines, falling up to 1.8%. Several prominent stocks experienced significant losses, including NTPC (down 2.54%), IndusInd Bank, UltraTech Cement, and others. Adani Wilmar plummeted 9% following a promoter offer for sale, and Tata Elxsi fell 8% on muted quarterly results.

While analysts expect the IT sector to remain resilient based on TCS’s performance, concerns remain regarding the banking sector’s performance in the face of continued FII selling. Experts predict stock-specific action will dominate in the coming days due to the ongoing earnings season, with some sectors, like select auto stocks, potentially outperforming in the weak market. However, the overall outlook remains cautious, with analysts anticipating further pressure on the market until the current uncertainties subside.