Foreign Portfolio Investors (FPIs) have withdrawn ₹4,285 crore from Indian equities over three trading sessions, driven by high valuations and global economic headwinds. This selling trend has contributed to a notable decline in the Indian stock market, with the BSE Sensex experiencing a drop of approximately 1,200 points and the Nifty falling below 23,700. The market cap erosion has reached around ₹9 lakh crore, marking one of the steepest declines in recent months. The banking sector has been particularly affected, with HDFC Bank leading the losses as it faces weaker-than-expected quarterly updates. The Nifty PSU Bank index has also seen significant losses, down nearly 3%, with Union Bank of India and Bank of Baroda among the top losers. Despite these challenges, early trading on January 7 showed signs of recovery, with the Sensex rising by 450 points and the Nifty climbing above 23,700, buoyed by gains in energy and PSU bank stocks.