What is causing the pressure on markets? Are investors concerned about FII sales at the end of the year?

Indian stocks decline as a result of FII selling and profit-taking, and the Nifty 50 and Sensex stock indexes fall by more than 1%. Keep abreast of market developments!

The anticipated FII selling is putting pressure on the Indian equity markets. Because of year-end, analysts think that FIIs are closing out their market positions and are unwilling to hold their positions, especially in cash markets.

The Sensex fell 973.67 points, or 1.2%, to the day's low of 80,639.97, while the Nifty 50 fell 300 pints, or 1.2%, from the day's peak to 24,323.60.

It is mostly based on FII selling because of year-end, according to Ajit Mishra, Senior Vice President of Research at Religare Broking. The large-cap stocks showed signs of selling pressure. Nonetheless, there was a notable rebound in certain companies, which might have been brought on by DII purchases. Additionally, he explained that FII selling is motivated by the strong gains they are generating in US markets. Additionally, a policy rate drop is anticipated, which might strengthen US markets.

Aside from that, profit-taking outpaced Fed policy at the chosen IT counters.

In the early trading hours, the Nifty Midcap 100, which tracks the broader markets, had some resilience before giving up to trade 450 points, or 0.8%, lower at 59,204.30. At 52,735.95, the Nifty Bank fell 780 points from its peak for the day.

The Nifty 50's decline was mostly caused by index heavyweights like HDFC Bank, Reliance Industries, Bharti Airtel, ICICI Bank, and TCS. However, the biggest losers in the Nifty 50 were Hero MotoCorp, Bharti Airtel, Grasim Industries, JSW Steel, and Shriram Finance, which saw a 4.8% loss.

Rupak De, Senior Technical Analyst at LKP Securities, stated that yesterday's bullish harami pattern on the daily period caused the Nifty to drop precipitously.