India’s benchmark stock indices opened sharply lower on Thursday, mirroring a broad global market slump triggered by persistent US debt and fiscal worries. The BSE Sensex nosedived by 578.3 points to hit 81,018.33 in early trade, while the NSE Nifty slid 203.45 points to 24,610. Market sentiment remained under pressure through the morning, with the Sensex later deepening its losses to 746.48 points, slipping to 80,832.82. Meanwhile, the Nifty traded 233.80 points lower at 24,575.65.
The sudden reversal comes a day after both indices posted healthy gains, driven by a positive momentum in domestic equities and fresh foreign inflows. On Wednesday, the Sensex had closed up by 410.19 points (0.51%) at 81,596.63, while the Nifty settled 129.55 points higher at 24,813.45.
Top Drags on the Market
Thursday’s decline was led by a host of heavyweights, including Mahindra & Mahindra, Tech Mahindra, Power Grid, Nestle India, HCL Technologies, Hindustan Unilever, Tata Consultancy Services (TCS), and ITC. Their collective underperformance signaled broad-based selling, especially in the IT and FMCG sectors.
Interestingly, Adani Ports and IndusInd Bank managed to buck the trend, registering marginal gains amid the broader sell-off.
Global Cues Weigh on Sentiment
Global market cues remained largely negative. While China’s Shanghai Composite Index was trading in the green, other major Asian indices including Japan’s Nikkei 225, South Korea’s Kospi, and Hong Kong’s Hang Seng were in the red. The downturn in Asia followed a steep fall in US markets on Wednesday, where investor anxiety over debt ceiling talks and government spending continued to cloud the outlook.
The weakness in global equities also comes amid lingering inflation fears and uncertainties surrounding the US Federal Reserve’s interest rate path.
Brent Crude Steady, FIIs Return
On the commodities front, Brent crude oil prices showed little movement, trading marginally lower by 0.05% at $64.88 per barrel, signaling some stability in energy prices.
Despite the market slump, there was a bright spot — Foreign Institutional Investors (FIIs) made a strong comeback after a day’s pause. According to exchange data, FIIs net bought ₹2,201.79 crore worth of Indian equities on Wednesday, reflecting continued global interest in Indian markets amid relative economic resilience.
Market Outlook
While domestic fundamentals remain relatively strong, today’s plunge is a stark reminder of India’s sensitivity to global economic cues. Analysts suggest that short-term volatility is likely to continue, especially with macroeconomic uncertainties looming over global markets.
Investors are advised to tread cautiously, closely monitor global developments, and avoid panic selling. Long-term investors may find selective buying opportunities in quality stocks during such dips, especially in sectors backed by strong earnings visibility.
