Sensex Falls 931 Points, Nifty Sheds 222 as Oil Prices Surge

N ArunaGiri, CEO of TrustLine Holdings, said markets may be entering a turning point. He weighed in on persistent foreign institutional investor selling and its likely market impact.

Historical context and recent consolidation

He noted markets paused after hitting a peak in September 2024. That phase produced roughly 12 to 18 months of what he called a time correction.

These pauses typically occur when valuations run ahead of earnings. Markets often wait for profits to catch up.

Earnings outlook for FY27

ArunaGiri highlighted improving earnings visibility. Analysts now expect double-digit earnings growth for FY27.

He said easing geopolitical tensions should support that recovery. Stronger corporate profits would increase chances of a market rebound.

FII flows and their cyclicality

On foreign flows, he emphasized their cyclical patterns. After two consecutive years of outflows, a reversal is plausible.

He suggested inflows could turn meaningfully positive as the cycle shifts. That would help sustain any market breakout.

Near-term triggers and downside risks

The West Asia conflict remains a key uncertainty. Volatility may persist until the situation stabilizes.

Recent sessions were choppy. The Sensex registered a drop of 931 points while the Nifty slipped by 222 points as oil prices surged.

House view and market outlook

Overall, TrustLine’s view points to a higher probability of mean reversion. Prolonged time correction into FY27 now looks less likely, he said.

He added that once geopolitical dust settles and earnings deliver, conditions may favor a sustained market breakout.

For updates and analysis, Filmogaz.com will continue tracking developments in flows, earnings, and geopolitics.