Indian Stock Market Opens with Big Drop Due to Global Trends
The Indian stock market started the day with significant losses, influenced by global trends. The BSE Sensex fell by 606.77 points, or 0.76%, to 79,542.10. Similarly, the Nifty 50 at the National Stock Exchange (NSE) dropped by 182.50 points, or 0.75%, to 24,232.00. The Nifty Midcap also opened in the red at 56,439.80, down 433 points, or 0.76%. Nifty Bank at NSE opened at 50,762.30, also in the red.
Among the sectoral stocks at NSE, sectors like Bank, Financial Services, FMCG, IT, Metal, Pharma, PSU Banks, Private Banks, Realty, Healthcare, Consumer Durables, Oil and Gas opened in red during the initial trading hour. However, Media and Auto sectors remained in the green.
Market analysts attribute the decline to disappointing earnings from Alphabet and Tesla, which have impacted global sentiment. Ajay Bagga, a banking and market expert, noted that the rotation from big tech to underperforming sectors in the US, part of the ‘Trump Trade,’ has raised questions about valuations for Big Tech and AI investments.
Varun Aggarwal, MD of Profit Idea, mentioned that market sentiment remains cautious, with technical indicators suggesting potential for further downside if key support levels are breached. Investors are closely watching global cues and economic data amid ongoing volatility.
In the last five trading days, the BSE Sensex has fallen by 0.79% or 634.86 points, while the Nifty at NSE has declined by 0.51% or 125.60 points. Globally, Asian indices like Japan’s Nikkei 225 and South Korea’s Kospi saw significant declines, mirroring losses on Wall Street where the S&P 500 and Nasdaq dropped sharply to multi-week lows. Tesla and Alphabet’s notable declines contributed to Nasdaq’s largest single-day percentage drop since October 2022.
Doubts Revealed
Indian Stock Market -: The Indian Stock Market is a place where people buy and sell shares of companies. It’s like a big marketplace for stocks.
BSE Sensex -: BSE Sensex is an index that shows the performance of 30 major companies listed on the Bombay Stock Exchange (BSE). It helps people understand how the market is doing.
Nifty 50 -: Nifty 50 is another index that shows the performance of 50 major companies listed on the National Stock Exchange (NSE). It also helps people see how the market is performing.
Sectoral stocks -: Sectoral stocks are shares of companies that belong to a specific industry or sector, like banking, IT, or financial services.
Alphabet -: Alphabet is the parent company of Google. It is a big technology company based in the United States.
Tesla -: Tesla is a company that makes electric cars and is also based in the United States. It is known for its innovative technology.
Foreign institutions -: Foreign institutions are organizations from other countries that invest in the Indian stock market. They can buy and sell shares just like Indian investors.
Domestic institutions -: Domestic institutions are organizations within India that invest in the stock market. They help support the market by buying shares.
