Nifty 50 slid for the second week in a row, 27 stocks shut in the red

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FPIs) have withdrawn ₹12,140 crore from Indian equities this week alone. Also Read: FII selling in Indian stock market may continue despite ₹27,000 crore outflow in Jan so far, say analysts; here's why The Q3 FY23 earnings season, thus far, has failed to provide the robust momentum needed to boost investor sentiment. Banks are grappling with tightening credit costs, adversely affecting their Net Interest Margins (NIMs).

Despite strong performance in other metrics like loan growth and asset quality, the decline in NIMs has raised concerns among investors, given its significance in assessing a bank's profitability and financial health. Analysts expect that the NIMs will be more likely to remain under pressure for 2–3 quarters. Further, major IT companies have reported mixed earnings.

This scenario has added to the cautious approach among investors, affecting overall market dynamics. Further, FMCG Major Hindustan Unilever (HUL) posted weak numbers for the December ending quarter, propelling its stock to touch an 18-month low during Tuesday's trading session. Additionally, concerns over increasing crude oil prices and China reportedly seeking to inject 2 million yuan into its declining stock market have further weighed on investors.

This situation is expected to influence FPI flows, especially considering the already elevated valuations of the Indian market. Also Read: Oil prices rise 2% driven by Red Sea tensions, US crude stock draw; Brent reaches $81/bbl Amid this backdrop, Nifty 50 concluded the week in negative territory, registering a decline of over 1%, settling at 21,352 points. Among the index constituents, 27 finished the week in the red, with Asian Paints leading the decline with a fall of 6.8%.