Indian Stock Markets Snap Three-Day Winning Streak Amid Global Weakness
Benchmark indices Sensex and Nifty closed in negative territory on Thursday, ending a three-session winning streak as weak global market cues weighed heavily on investor sentiment. The decline marked a significant reversal from the recent rally that had been driven by optimism surrounding the US-India trade deal.
Market Performance Details
The 30-share BSE Sensex opened on a weak note and extended losses throughout the trading session, ultimately falling 503.76 points or 0.60 per cent to settle at 83,313.93. During intraday trading, the index dropped as much as 666.07 points or 0.79 per cent to touch 83,151.62, reflecting the intensity of selling pressure.
The broader NSE Nifty followed a similar trajectory, declining 133.20 points or 0.52 per cent to close at 25,642.80. Market analysts attributed the downturn to profit booking after the recent sharp rally, combined with negative cues from international markets.
Top Gainers and Losers
Nifty50 Top Gainers:
- Trent (2.96%)
- Max Healthcare (1.50%)
- Tata Steel (1.13%)
- JSW Steel (0.95%)
- ONGC (0.85%)
- Jio Financial Services (0.73%)
- Grasim Industries (0.67%)
- Cipla (0.50%)
- SBI (0.44%)
- Dr Reddys (0.38%)
Nifty50 Top Losers:
- Hindalco (-3.01%)
- Eternal (-2.49%)
- Bharti Airtel (-1.66%)
- BEL (-1.53%)
- SBI Life (-1.18%)
- ITC (-1.17%)
- Titan Company (-1.12%)
- Infosys (-1.03%)
- Eicher Motors (-0.94%)
- Bajaj Finserv (-0.93%)
BSE Sensex Top Gainers:
- Trent (2.96%)
- Tata Steel (1.13%)
- SBI (0.44%)
- Bajaj Finance (0.15%)
- Tech Mahindra (0.06%)
- M&M (0.03%)
BSE Sensex Top Losers:
- Eternal (-2.49%)
- Bharti Airtel (-1.66%)
- BEL (-1.53%)
- ITC (-1.17%)
- Titan Company (-1.12%)
- Infosys (-1.03%)
- Bajaj Finserv (-0.93%)
- RIL (-0.92%)
- ICICI Bank (-0.85%)
- Asian Paints (-0.84%)
- HCL Tech (-0.73%)
Global Market Context
Asian markets presented a mixed picture with South Korea's Kospi ending nearly 4 per cent lower, while Japan's Nikkei 225 and Shanghai's SSE Composite also finished in negative territory. Hong Kong's Hang Seng managed to buck the trend, closing higher. European markets were trading in the red during the session, adding to the global risk-off sentiment.
In the United States, markets had ended mostly lower on Wednesday, with the Nasdaq Composite index falling 1.51 per cent and the S&P 500 declining 0.51 per cent. The Dow Jones Industrial Average was the exception, rising 0.53 per cent.
Analyst Perspectives
Vinod Nair, Head of Research at Geojit Investments Limited, explained the market dynamics: "Indian equities saw consolidation, as weakness was followed by a sharp rally in recent sessions driven by optimism around the US-India trade deal, suggesting profit booking was at play. Global cues added further pressure, with concerns over a broad-based tech sell-off in international markets and heightened US-Iran tensions leading to risk-off sentiment."
Nair added that market participants are now turning their focus to the upcoming RBI policy meeting for further direction.
Ponmudi R, CEO of Enrich Money, provided additional insight: "Indian equity markets traded in a tight range, signalling a wait-and-watch phase as investors remained cautious in the absence of fresh domestic triggers. While overall sentiment remained stable, the benchmarks struggled to sustain momentum at higher levels, reflecting a lack of follow-through buying despite earlier positives."
He noted that market participants are staying cautious, awaiting clearer signals from global macro trends, foreign institutional flows, and developments around US-Iran negotiations to gauge the next market direction.
Institutional Activity
According to exchange data, Foreign Institutional Investors (FIIs) bought equities worth Rs 29.79 crore on Wednesday, while Domestic Institutional Investors (DIIs) purchased shares worth Rs 249.54 crore in the previous session. This institutional activity suggests continued interest in Indian markets despite the day's downturn.
The market's performance reflects the complex interplay between domestic profit booking after recent gains and broader global uncertainties. Investors appear to be adopting a cautious stance as they monitor multiple factors including central bank policies, geopolitical developments, and corporate earnings that could influence market direction in the coming sessions.
