Banking and financial stocks were the top losers, with Nifty bank, Nifty financial services, Nifty PSU bank, and Nifty private bank declining the most. They declined in the range of 2.1-3.6 per cent.
Foreign investors are apparently cautious amid risks of the potential return of Covid, besides looming global recession worries as flagged by various agencies.
Indian stock markets opened near the flatline on Friday - the last trading session of the week. At the time of writing this report, Sensex and Nifty were largely steady.
The subdued market sentiment is due to the possibility of slowing global economic growth this year and the latest pulling out of funds by foreign portfolio investors (FPIs) from Indian stocks.
Foreign portfolio investors have sold assets worth about Rs 17,237 crore in Indian stock markets so far in 2023, the latest data from National Securities Depository showed.
Foreign portfolio investors (FPIs) have infused funds worth Rs 11,119 crore in Indian stock markets in the month of December and became net buyers for the second straight month, data from National Securities Depository showed.
Foreign portfolio investors have infused funds worth Rs 36,239 crore in Indian stock markets in the month of November and became net buyers again, data from National Securities Depository showed.
The rupee has come substantially off its all-time low. Currently, it is trading around 81.64-81.70 against the US dollar as against its record low of 83 it breached in mid-October, primarily due to the strength in the US Dollar Index.