Sensex falls over 300 pts, Nifty below 25,750 amid trade pact worries

Market Overview - The S&P BSE Sensex fell over 300 points, trading below 84,300, while the NSE Nifty 50 slipped below 25,750 [1][14] - The Nifty and Sensex have declined about 0.9% over the past three sessions, pressured by worries over foreign fund outflows and the rupee's slide to record lows amid stalled progress on an India-U.S. trade agreement [2][14] Foreign Institutional Investment - Foreign institutional investors (FIIs) returned to the buy side, snapping an eight-session selling streak, purchasing equities worth approximately Rs 1,172 crore on December 17, while domestic institutional investors were also net buyers with purchases of roughly Rs 769 crore [4][14] - Despite FII buying and net institutional buying, the market drifted down, possibly due to FIIs increasing their short positions, indicating a near-term sell on rally strategy [6][14] Economic Indicators - Concerns exist regarding the potential for the Japanese central bank to raise rates, which could trigger a reversal of the 'yen carry trade' and lead to further selling by FIIs [7][14] - The Indian rupee edged higher, rising 6 paise to 90.32 against the U.S. dollar, as investors assessed the Reserve Bank of India's intervention in currency markets [13][14] Global Market Trends - Asian stocks fell, with MSCI's broad Asia-Pacific index excluding Japan dropping 0.5%, and major markets like South Korea, Hong Kong, and Japan experiencing declines [8][14] - U.S. equity futures showed slight gains after a tech-led decline on Wall Street, with Nasdaq futures rising 0.3% and S&P 500 futures gaining 0.2% [8][14] Commodity Market Developments - Oil prices advanced as traders weighed the risk of tighter global supply due to potential new sanctions on Russian crude exports and disruptions from a blockade of Venezuelan oil tankers [11][12][14] - Precious metals cooled after a strong rally, with spot gold slipping 0.3% to $4,330 an ounce and silver easing 0.2% to $66.17 [9][14]