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Domestic indices slip as foreign funds stay on the sidelines
Benchmark equity indices fell for the fourth straight session as persistent foreign fund outflows and investor profit-taking weighed on sentiment. The sustained selling pressure erased recent gains and left markets looking cautious in the near term.
Why markets turned lower
- Foreign fund outflows: Overseas investors reduced their exposure, draining liquidity and pushing stock prices down.
- Profit-taking: After recent rallies, domestic investors booked gains, putting additional downward pressure on the market.
- Risk-off mood: Mixed global cues and concerns about earnings and macro data made participants more risk-averse.
Sectors and stocks to watch
Broad-based selling often hits cyclical and high-beta names first, while defensive sectors tend to hold up relatively better. Monitor quarterly earnings, capital flows, and updates from heavy-weight companies that can sway benchmark moves.
What investors should consider now
- Stay focused on fundamentals: Short-term volatility can create opportunities, but stick to quality stocks with good earnings visibility.
- Watch flows and global cues: Foreign fund movement and overseas market trends often dictate near-term direction.
- Manage risk: Use diversification and disciplined stop-loss strategies to protect gains from earlier rallies.
With sentiment fragile, the near-term outlook will likely be shaped by fresh corporate data, macro indicators and whether foreign investors return to the market. Until then, volatility may persist and cautious positioning is prudent.