Sensex, Nifty slips amid weak global sentiments and geopolitical tensions

India’s stock market closed lower on Thursday, with major indices witnessing sharp declines due to weak global sentiment and concerns over India’s economic outlook. The BSE Sensex dropped 494.75 points, or 0.61%, to settle at 81,006.61, while the NSE Nifty fell by 221.45 points, or 0.89%, to close at 24,749.85.

The market’s decline was widespread, as only 9 out of the 50 Nifty-listed companies managed to post gains, while 41 saw losses. Among the top gainers were Infosys, Tech Mahindra, Power Grid, Larsen & Toubro (L&T), and State Bank of India (SBI), which showed some resilience despite the overall bearish sentiment.

On the other hand, companies such as Bajaj Auto, Shriram Finance, Mahindra & Mahindra (M&M), Nestle India, and Hero MotoCorp were the biggest losers, dragging down the indices with notable declines.

VLA Ambala, Co-Founder of Stock Market Today, weighed in on the ongoing market correction, noting that the Nifty has dropped 6% over the past three weeks and may experience further declines. “The drop is driven by weak global sentiment regarding India’s GDP growth, rising fiscal deficit, high inflation, unemployment concerns, and geopolitical tensions affecting India’s trade and employment ties with global economies,” she said.

However, Ambala also highlighted potential buying opportunities for investors during this downturn, particularly in outperforming stocks. “I would advise caution in the short term, but the correction could offer dip-buying opportunities. Investors should keep an eye on Foreign Portfolio Investors’ (FPI) stock holdings to plan their strategies accordingly,” she added.

(ani)

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