Sensex declines 650 points: What's dragging the market today?
What's the story
The Indian stock market experienced a decline today, with the Sensex and Nifty both opening in the red. Around morning, the Sensex dropped around 650 point to record its intraday low of 82,670, while the Nifty fell to 25,318. The decline comes amid weak investor sentiment and uncertainty over the India-US trade deal negotiations.
Expert opinion
Indian markets under sustained pressure with no clear direction
Ajay Bagga, a banking and market expert, told ANI that the Indian markets are under sustained pressure with no clear direction. He said President Trump's statement about a possible visit to India has raised hopes for an India-US trade deal. However, he cautioned that this narrative has been optimistic but misleading for several months now.
Market trends
Nifty sectoral indices witness losses
The selling pressure was evident across the broader market with Nifty 100 down by 0.52%, Nifty Midcap 100 down by 0.37%, and Nifty Smallcap 100 losing out by 0.71%. Most sectoral indices traded in the red, with Nifty Auto, FMCG, IT, Metal, and PSU Bank witnessing prominent losses.
Global influence
Weak global cues impact investor sentiment
The weak global cues, particularly from Wall Street, have also impacted investor sentiment in the Indian markets. Concerns over AI valuations have put US markets under pressure again. A global sell-off in semiconductor stocks on Wednesday erased over $500 billion in market value. The ongoing US government shutdown has also affected investor sentiment with reports indicating around 10% of flights (around 1,800) being canceled from Friday across several US airports.