Mumbai (Maharashtra) [India]: Indian stock markets opened lower on Thursday, extending their recent negative trend as concerns over an economic slowdown, muted earnings, and persistent foreign portfolio investor (FPI) outflows weighed on investor sentiment.
The Nifty 50 index fell 111.65 points (-0.5%) to open at 22,433.40, while the BSE Sensex dropped 410.66 points (-0.55%) to 74,201.77.
Key Market Factors:
- FPI Outflows: Foreign investors continued to withdraw funds, pressuring Indian equities.
- Muted Earnings: Weak corporate results added to investor concerns.
- Global Market Weakness: Weak trends from major Asian markets contributed to selling pressure.
Sectoral Performance:
All sectoral indices opened in the red, with Nifty Metal (-2.13%), Nifty Auto (-1.88%), and Nifty Realty (-1.88%) leading the decline. Nifty PSU Bank (-1.64%) and Nifty Media (-1.78%) also saw significant losses.
At the time of reporting, 47 out of 50 Nifty stocks were in the red, with IndusInd Bank, Mahindra & Mahindra, Tech Mahindra, Wipro, and Tata Steel being the biggest losers. Coal India was among the few gainers.
Market Analysis & Outlook:
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated,
“Stock markets dislike uncertainty, and uncertainty has been rising. Persistent concerns over trade policies and geopolitical tensions continue to impact investor sentiment.”
Akshay Chinchalkar, Head of Research at Axis Securities, noted that the Nifty and India VIX have declined for seven consecutive days, indicating that large-scale plunges are unlikely in the immediate term. He added,
“22500 remains immediate support, followed by 22370. However, a sustainable rebound will only be confirmed if the market closes above 22720.”
Global Market Impact:
Weakness in global markets intensified selling pressure in Indian equities:
- Japan’s Nikkei 225: -3.32%
- Hong Kong’s Hang Seng Index: -2.31%
- South Korea’s KOSPI: -3%
With global headwinds, continued FPI outflows, and weak domestic earnings, market volatility is expected to persist in the near term.