India’s equity indices witnessed a sharp decline on Thursday as market volatility surged. The Nifty50 dropped below the 25,000 mark, while the BSE Sensex plunged 700 points, reflecting investor caution amid global uncertainties.
Market Performance at a Glance
Nifty50: 24,928.15, down 213 points (-0.85%)
BSE Sensex: 81,837.38, down 678 points (-0.82%)
Key Drivers Behind the Decline
The ongoing uncertainty in global trade policies is keeping investors on edge. US-China trade relations and India-EU Free Trade Agreement discussions are closely watched, but no definitive agreements have been reached.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, suggests that the market may continue its flat trend in the near term due to the lack of strong positive triggers. He points out that while discussions between the US and China are making headlines, confirmation from Chinese authorities is still awaited.
Meanwhile, Brent crude surged to $70, driven by Middle East security concerns—a development negatively impacting industries such as paints, adhesives, tyres, and aviation, whereas ONGC and Oil India may see an upside.
Global Market Trends
US Stock Market: The S&P 500 closed lower on Wednesday, as geopolitical tensions weighed on investor sentiment.
Oil Prices: Crude oil hit its highest level in over two months amid supply disruption fears following US personnel withdrawal from the Middle East.
Gold Prices: Safe-haven demand surged due to heightened geopolitical risks, reinforcing expectations of Federal Reserve interest rate cuts.
Institutional Investment Movement
Foreign Portfolio Investors (FPIs): Net sellers on Wednesday, offloading ₹446 crore worth of shares.
Domestic Institutional Investors (DIIs): Net buyers, purchased shares worth ₹1,585 crore.
FIIs in Futures Market: Net short positions declined from ₹93,024 crore to ₹86,594 crore between Tuesday and Wednesday.
Looking Ahead
Investors are bracing for further market volatility, keeping a close eye on trade negotiations, crude prices, and interest rate decisions. As uncertainties persist, traders and analysts remain watchful of global cues that could influence sentiment in the days ahead.
