Indian Stock Market Faces Decline After US Market Drop and Union Budget Announcement
The Indian stock market experienced a decline following a drop in US markets, with the S&P 500 and Nasdaq hitting multi-week lows. The Dow Jones also saw a significant drop. Asian markets, including Japan’s Nikkei 225 and South Korea’s KOSPI, mirrored these losses.
On Thursday, the S&P 500 dropped 2.31 points to 5,427.13, marking its worst one-day trade since December 2022. The Nasdaq saw its first major single-day percentage decline since October 2022, and the Dow Jones declined by 1.25%, or 504.22 points, to 39,853.87. The decline in American markets was attributed to investors’ disappointment with the earnings of Alphabet and Tesla.
Asian markets also opened lower on Thursday. Japan’s Nikkei 225 declined by 2.58%, or 1,011.15 points, to 38,143.70, and the Topix of Tokyo Stock Exchange declined by 2.17%, or 60.55 points, to 2,732.57. South Korea’s KOSPI dipped by 1.78%, or 49.05 points, to 2,709.66.
In India, the Nifty 50 index closed with a decline of 65 points at 24,413.50, while the BSE Sensex declined by 280 points to 80,148.88 points. According to Rupen Rajguru, Head of Equity Investments and Strategy at Julius Baer India, the stock market will now shift its focus to Q1 FY25 earnings and global cues. The earnings season has shown some positive signs in the IT and consumption sectors, although financials are experiencing some strain.
Over the last five trading days, the BSE Sensex has fallen by 0.79%, or 634.86 points, while the Nifty at the National Stock Exchange (NSE) has seen a decline of 0.51%, or 125.60 points. Despite the Union Budget announcement, the budget had no major effect on the stock markets in the country. Ajay Bagga, a banking and market expert, noted that the budget proved to be a non-event, with Indian markets falling and then recovering during the day itself.
Doubts Revealed
Indian Stock Market -: The Indian Stock Market is a place where people buy and sell shares of companies in India. It’s like a big marketplace for company ownership.
US Market -: The US Market refers to the stock markets in the United States, like the New York Stock Exchange, where people buy and sell shares of American companies.
S&P 500 -: The S&P 500 is a list of 500 big companies in the US. It’s used to see how well the stock market is doing.
Nasdaq -: The Nasdaq is another stock market in the US, known for having many technology companies like Apple and Google.
Dow Jones -: The Dow Jones is a list of 30 big companies in the US. It’s another way to see how the stock market is doing.
Nikkei 225 -: The Nikkei 225 is a list of 225 big companies in Japan. It’s used to see how well the Japanese stock market is doing.
KOSPI -: The KOSPI is a list of big companies in South Korea. It’s used to see how well the South Korean stock market is doing.
Nifty 50 -: The Nifty 50 is a list of 50 big companies in India. It’s used to see how well the Indian stock market is doing.
BSE Sensex -: The BSE Sensex is a list of 30 big companies in India. It’s another way to see how the Indian stock market is doing.
Q1 FY25 -: Q1 FY25 means the first quarter of the financial year 2025. Companies report their earnings for this period to show how much money they made.
Global cues -: Global cues are signals or hints from other countries’ markets that can affect the Indian stock market. For example, if the US market goes down, it might make the Indian market go down too.
