Indian Stock Markets Fall as Sensex and Nifty Drop After US Market Sell-Off
On Friday, Indian stock markets experienced a significant drop, with Sensex and Nifty closing 1.1-1.2% lower at 80,981.95 points and 24,717.70 points, respectively. Analysts pointed to a sell-off in the US markets and weak US manufacturing activity as key reasons for the decline.
Vinod Nair, Head of Research at Geojit Financial Services, explained, “The domestic market saw a broad-based sell-off, indicating that it may have reached an exhaustion point due to a lack of new triggers for further upward movement. Q1FY25 earnings have been lackluster so far, while broader market valuations remain significantly high.”
Joseph Thomas, Head of Research at Emkay Wealth Management, added, “On the domestic front, stock-specific earnings outcomes and RBI policy decisions in the coming week may have a bearing on the markets.”
Despite the recent fall, the Indian stock market achieved a new milestone on Thursday, with both Nifty and Sensex reaching record highs. The Nifty 50 index hit the 25,000 mark for the first time, supported by the US Federal Reserve’s decision to keep interest rates unchanged for the eighth consecutive time.
According to Ashishkumar Chauhan, MD and CEO of NSE, “The last impetus came from the budget of the financial year 2024-25, and now people will be waiting for RBI interest rates declaration or the Fed interest rate declaration. India is the fastest-growing large economy in the world, so our own numbers on a quarter basis are also crucial.”
Doubts Revealed
Sensex -: Sensex is a stock market index in India that shows how the 30 largest and most actively traded stocks on the Bombay Stock Exchange (BSE) are performing.
Nifty -: Nifty is another stock market index in India, but it tracks the performance of the top 50 companies listed on the National Stock Exchange (NSE).
US Market Sell-Off -: A US market sell-off means that many people in the United States are selling their stocks quickly, which causes the prices to drop.
Analysts -: Analysts are experts who study financial markets and companies to give advice on buying or selling stocks.
Q1FY25 -: Q1FY25 stands for the first quarter of the financial year 2025. Financial years in India usually start in April and end in March of the next year.
RBI -: RBI stands for the Reserve Bank of India, which is the central bank of the country. It makes important decisions about money and interest rates.
Profit Booking -: Profit booking means selling stocks that have increased in value to make a profit.
Geojit Financial Services -: Geojit Financial Services is a company in India that provides financial advice and services like stock trading.
Emkay Wealth Management -: Emkay Wealth Management is another company in India that helps people manage their money and investments.
