Indian Equity Markets Decline Amid FII Outflows and Rupee Weakness

Indian equities opened lower on Wednesday, with the Nifty 50 dropping 0.43% to 25,061.45 and the Sensex falling 0.44% to 81,743.40. Persistent foreign institutional investor (FII) outflows and a record-weak rupee weighed on sentiment.

FIIs sold ₹3,551 crore worth of equities on Monday, extending their September exodus to over ₹17,000 crore. Domestic institutional investors provided a counterbalance, injecting ₹43,000 crore during the same period. "Foreign investors offloaded ₹3,551 crore in cash equities on September 23, even as domestic institutions absorbed ₹2,671 crore, highlighting the strength of local liquidity," said Ponmudi R, CEO of Enrich Money.

The rupee's decline to a historic low of 88.78 against the US dollar added pressure. Global headwinds, including Federal Reserve Chair Jerome Powell's caution on stretched valuations in risk assets, further dampened market confidence.