Amid uncertain global conditions, the BSE Sensex and Nifty50, India’s primary stock indices, experienced significant declines on Thursday.
The BSE Sensex fell over 800 points, while the Nifty50 dipped below 25,550. By 9:16 AM, the BSE Sensex was trading at 83,421.10, down 845 points or 1%. The Nifty50 saw a decrease of 270 points, or 1.05%.
In international markets, US stocks closed mostly unchanged, with technology shares gaining amid rising concerns over tensions in the Middle East and forthcoming US labor statistics.
Japanese stocks rose following comments from the new prime minister that weakened the yen, and oil prices increased due to the escalating conflict. The dollar reached a one-month high against the yen, bolstered by a strong US jobs market.
Meanwhile, Foreign portfolio investors shifted to net sellers and have offloaded shares worth Rs 5,579 crore on Tuesday. The domestic institutional investors purchased shares, valued at Rs 4,609 crore.
Additionally, the net long position of foreign institutional investors dropped from Rs 3.38 lakh crore on Monday to Rs 3.18 lakh crore on Tuesday.
But despite plunge, experts anticipate market consolidation and stabilization after some days. Head of Research at Wealth Management Siddhartha Khemka said ‘We anticipate market consolidation with stock-specific movements as we approach the earnings season, when companies will begin to share pre-quarterly updates. In the short term, investors will be closely monitoring US Job Jolt and manufacturing data.’
Senior Vice President of Research at Religare Broking Ajit Mishra also echoed similar points, saying ‘We expect the market to stabilize after a strong upward trend in recent weeks. Attention may shift towards the IT and banking sectors, as firms start releasing their pre-quarterly updates this week.’
Currently as per technical analysis, a potential sell-on-rise strategy is likely, though a substantial follow-through selling momentum was notably absent on tuesday.
