Stock markets decline in early trade on foreign fund outflows

Market moves on Tuesday morning (November 25, 2025)

Sensex and Nifty slipped in early trade on Tuesday morning as fresh foreign fund outflows weighed on investor sentiment. The declines came amid a cautious mood, with traders digesting the impact of ongoing overseas selling on domestic equities.

Key drivers of the fall

  • Foreign fund outflows: Continued net selling by foreign portfolio investors (FPIs) was the main factor cited by market participants.
  • Risk-off tone: Global risk sentiment and cautious positioning ahead of upcoming macro data added to pressure.
  • Sectors under pressure: Financials and large-cap names were among those that felt the strain in the morning session.

Market breadth and investor mood

Market breadth tilted negative as more stocks declined than advanced. Traders described the mood as cautious rather than panicked, with many participants waiting for clearer signs before committing fresh funds.

What investors should watch next

  • Flows: Monitor daily FPI activity to gauge if selling persists or reverses.
  • Macro cues: Keep an eye on global cues, domestic economic data, and central bank commentary.
  • Support and resistance: Watch key technical levels on Sensex and Nifty for signs of stabilization or further weakness.

Short-term volatility could continue while foreign outflows remain active. Long-term investors may want to focus on fundamentals and valuations, while short-term traders should keep risk controls in place.

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