Stock Market Today: Indian Markets Drop Sharply as Nifty50 Slips Below 25,000; Sensex Sheds Over 500 Points
Mumbai: The Indian equity markets witnessed significant declines on Friday, with benchmark indices Nifty50 and BSE Sensex both falling sharply in morning trade. As of 10:27 AM, the Nifty50 was trading at 24,956.05, down by 155 points or 0.62%, while the BSE Sensex stood at 81,753.83, lower by 505 points or 0.61%.
Analysts suggest the market is entering a phase of consolidation, as investors closely track quarterly earnings and ongoing trade discussions between the US and India. Key companies set to announce results on Friday include Reliance Industries, JSW Steel, and L&T Finance.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, pointed out that “In July, so far, India has been underperforming most markets, with a dip of 1.6% in Nifty. A significant contributor to the decline is the selling by Foreign Institutional Investors (FIIs). There is a clear pattern in FII activity this year so far. They were sellers in the first three months. For the next three months they turned buyers. And in the seventh month the trends so far indicate further selling unless some positive news reverse the downtrend in the market. Along with selling in the cash market, FIIs have been increasing short positions in the derivatives market too, which reflect a bearish outlook. Elevated valuations in India and cheaper valuations in other markets will continue to influence FII activity.”
Vijayakumar also noted recent trends in the Indian economy: “A significant feature of economic activity in India during the recent years has been the resilience of luxury consumption and weakness in mass consumption. Early indications from Q1 results — good results from the hotel industry — indicate continuation of this trend. Niche luxury segments across sectors are likely to do well.”
Asian stock markets opened with moderate gains on Friday, buoyed by strong economic data that helped ease concerns about the US economy. On Wall Street, the S&P 500 and Nasdaq Composite reached record highs on Thursday, lifted by further evidence of robust consumer spending and positive corporate earnings in the United States.
Meanwhile, gold prices remained steady during early Asian trading hours Friday, though the precious metal is headed toward a weekly loss as a firm dollar and upbeat US data weighed on investor demand.
(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Mumbai Samachar)