Indian equity markets saw a sharp bout of selling on Thursday as the BSE Sensex slipped over 400 points, while the Nifty 50 dropped below the 25,250 level, reflecting nervous sentiment on Dalal Street after recent gains.
The mood was subdued right from the opening bell, tracking weak global cues. Asian markets traded lower, and GIFT Nifty had already signalled a negative start, setting the tone for the session. Investors chose to pare risk amid uncertainty around global interest rates and lingering geopolitical concerns.
One of the major overhangs was the US Federal Reserve’s decision to keep interest rates unchanged. While the move was widely expected, the absence of clear signals on near-term rate cuts dampened risk appetite across global equities, including India. Traders opted for profit-booking after the market’s recent rally.
Adding to the pressure was the Indian rupee slipping to record lows against the US dollar. The weaker currency raised concerns around capital outflows and imported inflation, weighing on overall market confidence. Although a soft rupee typically supports export-oriented stocks, it failed to offset broader selling pressure.
Sectorally, IT and metal stocks were among the laggards, while select FMCG and defensive names offered limited support. Stocks such as ITC and Vedanta remained in focus amid stock-specific developments and earnings-related chatter. Broader markets also mirrored the weakness, with midcap and smallcap stocks trading lower.
In contrast to equities, gold and silver prices moved higher, as investors sought safety amid volatility. The rise in precious metals highlighted the shift towards defensive assets during uncertain market conditions.
Market participants are also staying cautious ahead of important domestic cues, including upcoming economic data, quarterly earnings, and the broader policy outlook as the Union Budget approaches.
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