Global Sentiment Woes Weigh Down Indian Stock Markets

Indian stock markets experienced a sluggish start on Thursday, burdened by weak global sentiment rooted in growing concerns over debt and deficit levels in the United States. This discontent stems from increased volatility in bond markets around the globe, as investors react to US President Donald Trump's debt financing and spending strategies.

The Nifty 50 index began at 24,733.95, marking a decrease of 79.50 points or 0.32 percent, while the BSE Sensex commenced at 81,323.05, dropping by 273.58 points or 0.34 percent. According to market experts, bond markets across regions, including the US, Japan, and Europe, are exhibiting heightened volatility, reflecting a global undercurrent of apprehension regarding the US debt situation.

Ajay Bagga, a banking and market expert, indicated that this bond market instability serves as a cautionary signal correlating with the US fiscal landscape. He noted that US equity markets also recorded a significant decline, with apprehensions about the impact of Trump's tax cuts and spending crossing over to Asian markets, which followed the US trend.

Bagga mentioned that a recent US Treasury auction did not receive the expected response, with structural issues in US fiscal policy remaining unresolved. Despite short-term market edginess, he anticipates that measures such as a universal tariff, tax cuts, and deregulation could eventually foster a thriving environment for risk assets. However, during the early trade, only the Nifty Media sector bucked the trend to open in green, with other sectors, including IT, FMCG, and Auto facing declines.

The opening session saw Adani Ports, Adani Enterprises, and Jio Financial Services as notable gainers among the Nifty 50, while Tech Mahindra, Power Grid, and HCL Technologies experienced pressure. Major companies like ITC and Sun Pharmaceutical Industries are set to release their quarterly earnings today. Similarly, Asian markets reflected this broader sentiment downturn, with Japan's Nikkei 225, Singapore's Straits Times, and South Korea's KOSPI all registering declines.

(With inputs from agencies.)