Mumbai: On Thursday, domestic stock markets experienced selling pressure, primarily driven by declines in major technology stocks, a lack of significant global indicators, and underwhelming performance in Asian markets.
The Nifty 50 at the National Stock Exchange (NSE) closed at 23,914.15, down 360.75 points, while the BSE Sensex finished at 79,043.74, a decrease of 1,190.34 points. Both indices fell by over 1 percent during the trading session.
Market analysts attribute this decline to investor apprehensions regarding the policies of US President-elect Donald Trump, especially concerning the future of US interest rate cuts.
"The Indian stock market is facing pressure today due to several factors, including the lack of substantial international cues, as the US stock market remains closed. Domestic institutional investors (DIIs) are closely watching developments in anticipation of the Indian Union Budget 2025 next month. The selling by foreign institutional investors (FIIs), combined with a robust US dollar, is negatively impacting market sentiment. Additionally, geopolitical tensions are adding to the market's challenges," stated Vinnaayak Mehta, Founder of The Infinity Group.
At the end of trading on the NSE, sectoral indices for Banking, Auto, Financial Services, FMCG, IT, Metals, Private Banks, Pharma, Realty, Healthcare, Consumer Durables, and Oil and Gas all recorded declines. In contrast, the Media and PSU Banks sectors managed to remain in positive territory.
Notable gainers during the session included Adani Enterprises, Shriram Finance, and State Bank of India, while significant losers comprised SBI Life Insurance, Mahindra & Mahindra, Infosys, HDFC Life Insurance, and Bajaj Finance.
"External factors, such as recent anti-dumping measures in the steel industry and trade disputes concerning China's solar energy components, are further straining the Indian economy. Weak growth and the depreciating rupee are prompting foreign portfolio investor (FPI) outflows, which may continue until the rupee stabilizes," remarked VLA Ambala, Co-Founder of Stock Market Today.
Analysts have advised caution regarding the interpretation of the recent market decline. Ajay Bagga, an expert in market and banking, remarked, "The decrease in F&O volumes has led to heightened volatility on expiry days. Additionally, the upcoming Thanksgiving holiday has resulted in reduced trading volumes in the US. It is important not to overanalyze today's market drop. As a new series begins tomorrow, we anticipate a market recovery."
