Indian stock markets saw a sharp decline on Thursday as key equity benchmarks dropped over 1% at the opening. The Sensex opened at 72,262, down 872 points, while the Nifty fell by around 300 points to open at 22,383.40. Various sectors, including banking, realty, chemicals, auto, metal, and healthcare, experienced losses.
The market sentiment was impacted by US President Donald Trump’s failure to provide a clear resolution to the West Asia conflict, leading to fresh concerns. Despite this, experts suggest a mildly bullish outlook in the near term due to factors like lower crude prices, improved geopolitical conditions, and consistent DII inflows. However, market volatility is expected to persist, driven by factors such as crude oil price movements, FII activities, and developments in West Asia.
While the Indian rupee faced pressure, it displayed signs of stabilization supported by a positive global risk sentiment. Wall Street closed higher, with the S&P 500 and Nasdaq registering gains. In Asia, major indexes like the Nikkei, Hang Seng, and KOSPI witnessed declines. Oil prices rebounded, with Brent crude futures and US WTI futures showing significant increases in early trading.
Foreign institutional investors were net sellers in the Indian equity markets on Wednesday, selling shares worth Rs 8,331 crore, while domestic institutional investors bought equities worth Rs 7,171.80 crore, providing some support.
