This week, foreign portfolio investors (FPIs) reversed their three-week buying trend and once again became net sellers of Indian stocks. In the week that concluded on December 20, 2024, FPIs sold 73,452 crore worth of stocks.

Investor confidence has plummeted, according to the week's data, with FPI flows displaying negative numbers for four of the five trading days.

On Friday, December 20, 2024, FPIs sold off Rs 35,186 crore worth of stocks, causing investors to lose a staggering Rs 19 lakh crore. The Nifty 50 had its worst week of 2024, losing for the fifth day in a row.

Overall sentiments about markets

The market's sentiment was weakened by high valuations and the expectation that the US Fed would reduce interest rates more slowly, which resulted in widespread selling this week.

Analysts, meanwhile, are still pessimistic about the market for the next few sessions and anticipate that benchmark indices will decline even more on Monday. According to analysts, market sentiment may stay negative for a few more sessions if the US Federal Reserve adopts a hawkish outlook for future rate cuts.

Concerns about the rupee's depreciation, recent net selling by foreign institutional investors, rich valuations, and the lack of improvement in December quarter corporate earnings could all make this worse.

Indian IT stocks were unable to maintain their early gains on Friday, despite an upward revision in revenue growth guidance from US-based information technology player Accenture Plc.

The Nifty IT index lost almost 5 per cent for the week after plunging 2.6 per cent on Friday. The sub-index'sworstperformers were industry heavyweights like Tech Mahindra, LTI Mindtree, L&T Technology Services, and TCS, which saw losses ranging from 2.2 per cent to 6.3 per cent.