Dalal Street witnessed a sharp sell-off on Thursday, with both benchmark indices — the Sensex and Nifty — falling over 1% during the afternoon session due to global uncertainties and rising geopolitical tensions.
By 2:29 pm, the S&P BSE Sensex was down 911 points at 81,603.95, while the NSE Nifty50 dropped 288.75 points to 24,854.45. This marked a volatile trading day where early losses were briefly recovered before another steep decline.
Key Drivers of the Market Fall:
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US-China Trade Uncertainty: Investor sentiment was shaken by President Donald Trump’s vague announcement of a tariff framework involving a 55% rate on Chinese imports and 10% on American goods. Despite talk of a potential deal, China has not confirmed any progress, leaving markets in limbo.
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Middle East Tensions: Rising geopolitical instability, especially Iranian threats toward US military bases if nuclear talks fail, have pushed Brent crude prices up to $70 per barrel. This has raised concerns about cost pressures across several Indian sectors.
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Global Market Cues: Wall Street and Asian markets also showed weakness, and European indices opened lower, adding to the bearish sentiment in Indian equities.
Sectoral and Stock Impact:
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IT Sector: Dropped 1%, affected by its high dependence on the US market.
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Other Impacted Sectors: Paints, adhesives, tyres, and aviation stocks were under pressure due to rising crude prices.
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Potential Gainers: Energy companies like ONGC and Oil India may benefit from higher crude prices.
Broader Market Performance:
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Mid-cap and Small-cap indices declined over 1%.
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Only three sectoral indices remained in positive territory, highlighting the widespread nature of the sell-off.
Expert Commentary:
Dr. VK Vijayakumar of Geojit Investments noted the market’s nervousness over mixed signals on the US-China front. Kranthi Bathini of WealthMills Securities pointed out that profit-booking intensified as European markets opened lower, dragging the Nifty below the key 25,000 mark.
Outlook:
Unless clearer direction emerges on the trade deal and Middle East tensions ease, markets may remain volatile. Investors are expected to remain cautious amid these global uncertainties.
