Sensex and Nifty decline sharply as global volatility, inflation, and trade tensions impact investor sentiment
Indian stock markets have joined the global downturn, with the BSE Sensex plunging over 600 points and the Nifty 50 sliding 1.5% in early trading. The sell-off mirrors global trends, as concerns over inflation, trade tensions, and economic slowdowns shake investor confidence across major economies.
“Global Market Turmoil Hits Indian Stocks Amid Economic Concerns”
The slump in Indian equities follows sharp losses in U.S. and European markets, where the S&P 500 and Nasdaq Composite fell 1.7% and 2.6%, respectively. In Asia, markets remained mixed, with Japan’s Nikkei 225 posting slight gains while Hong Kong’s Hang Seng and China’s Shanghai Composite saw declines.
Sectors such as IT, banking, and metals led the losses in India, with foreign institutional investors (FIIs) continuing to pull capital amid global uncertainty. The Rupee also weakened against the U.S. dollar, reflecting risk-off sentiment and concerns over capital outflows.
“Indian markets are feeling the ripple effects of global economic uncertainty, with heightened volatility expected in the near term,” said Anil Sharma, Chief Market Strategist at Axis Securities. “Investors are watching for cues from the Reserve Bank of India (RBI) and global central banks on inflation and interest rates.”
While domestic economic fundamentals remain relatively strong, analysts caution that rising crude oil prices, global monetary tightening, and geopolitical risks could weigh on India’s growth outlook. Markets are now looking ahead to key economic data releases and central bank policy moves for signs of stability.