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Below the Views on why Sensex, Nifty are falling by Dr. Narayani Ramachandran, NMIMS Bengaluru

The Indian stock market’s weak opening is driven by global and domestic factors. Key reasons include weak earnings expectations from Indian banks due to rising bad loan provisions and margin pressure. MSCI index reshuffling has caused volatility, leading to outflows from passive funds. DIIs, having invested at higher levels, now face reduced buying support. Rising US bond yields make equities less attractive, prompting FIIs to shift funds to China, where better valuations and policy measures offer opportunities. Given these factors, volatility may persist, and investors should monitor trends closely while considering defensive sectors like FMCG, pharma, and IT.
 

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