Mumbai: Indian equity markets witnessed a sharp decline on Thursday, as heightened tensions between India and Pakistan triggered widespread investor caution. This marks the second consecutive day of losses for benchmark indices.
The S&P BSE Sensex fell 588.80 points, closing at 79,212.53, while the NSE Nifty50 shed 207.35 points to settle at 24,039.35. Early gains were quickly erased as market sentiment turned negative, although some losses were trimmed later in the session due to a rebound in heavyweight stocks.
Key Highlights:
- Geopolitical strain weighs on sentiment
According to Pranay Aggarwal, CEO of Stoxkart, the ongoing India-Pakistan tensions were a primary factor behind the market dip, leading to caution among traders and institutional investors. - IT stocks shine amid selloff
Despite the broader decline, TCS led the gainers, rising 1.36%, followed by Infosys (+0.60%) and Tech Mahindra (+0.50%), as investors showed confidence in resilient tech fundamentals. Nifty IT was the only sectoral index to close in positive territory, up 0.72%. - Heavy losses in Adani Ports, Axis Bank
Among the laggards, Adani Ports dropped 3.61%, Axis Bank 3.48%, and Eicher Motors 3.41%. Other major losers included Bajaj Finserv (-2.85%) and Power Grid (-2.56%). - Volatility surges; mid and small caps hit hard
The India VIX spiked 5.58%, signaling growing uncertainty. The Nifty Midcap100 and Nifty Smallcap100dropped 2.55% and 2.45% respectively, reflecting broader market weakness.
Sector-wise, apart from IT, all indices ended in the red. Nifty Media plunged 3.24%, followed by losses in Realty (-2.80%), Pharma (-2.24%), and PSU Banks (-2.24%).
Despite the decline, some market analysts remain optimistic. Swapnil Aggarwal of VSRK Capital noted, “This appears to be a sentiment-driven correction. Depending on geopolitical developments over the weekend, markets may attempt a recovery early next week.”
