The stock market saw a significant downturn on Thursday as major indices closed with heavy losses due to rising global uncertainties and underperformance by large-cap stocks.
The S&P BSE Sensex dropped by 542.47 points, settling at 82,184.17, while the NSE Nifty50 slipped by 157.80 points to end the day at 25,062.10. The pressure was felt across almost all sectors, with fast-moving consumer goods, information technology, and financial shares contributing most to the decline.
Investors witnessed a sharp drop in broader market indices too, driven by heightened volatility throughout the trading session. Sentiment remained weak due to discouraging cues from global markets and growing nervousness over the delay in finalising the long-anticipated India-US trade agreement, which many hoped would be announced during Prime Minister Narendra Modi’s UK visit.
FMCG stocks were among the hardest hit, with Nestle India plunging over 5%, making it the worst-performing stock in the Nifty50 pack. IT stocks also faced downward pressure, in line with weak overnight trading in the US as fears over inflation and interest rate hikes resurfaced.
Other notable decliners included Trent, Tech Mahindra, Shriram Finance, and Reliance Industries, all of which contributed to the drag on the benchmark indices.
Despite the overall slump, a few stocks managed to end in the green. Eicher Motors, Dr Reddy’s, Tata Motors, Tata Consumer Products, and Cipla posted gains, offering limited relief to an otherwise negative trading session.
Market experts attributed the fall to a mix of short-term concerns. A fund manager from Mumbai noted that a blend of weak global signals and uncertainty surrounding India’s trade negotiations with the US has created a difficult environment for investors.
With the first-quarter earnings season underway and no clear timeline for the trade agreement, analysts believe that the market may continue to experience turbulence in the coming days.
