FX.co ★ Sensex Finishes Sharply Lower

India’s BSE Sensex closed 1.4% lower at 74,775.7 on Friday, extending its decline for a third consecutive session, after a sharp late-session selloff erased earlier gains. Trading was heavily influenced by the MSCI Global Standard Index rebalancing, which prompted an estimated USD 800 million to USD 1 billion in passive foreign outflows from Indian equities and fueled significant intraday volatility.

Sentiment was further weighed down by continued FII outflows, persistent geopolitical uncertainty, and weaker-than-normal monsoon forecasts that could stoke inflation risks. Most sectors came under pressure, with profit-taking in oil & gas, metals, autos, and financials, partially offset by strength in technology shares. Power Grid (-3.5%), IndiGo (-3.3%), NTPC (-2.9%), M&M (-2.7%), Tata Steel (-2.7%), and Bajaj Finance (-2.7%) were among the worst performers.

In contrast, tech stocks showed relative resilience, supported by optimism around artificial intelligence and an improving global technology outlook. For the month, the Sensex dropped 2.8%.