Indian Stock Markets Tumble Amid Global Volatility and Trade Tensions

On Thursday, Indian stock markets witnessed substantial slumps, as indices mirrored the declines of US markets amid dismal fiscal sentiments. The Sensex recorded a dip, closing at 80,951.99 points, marking a decrease of 644.64 points or 0.79 percent. Simultaneously, the Nifty ended at 24,609.70 points, falling by 203.75 points or 0.82 percent.

With the sole exception of Nifty Media, all sectoral indices reported declines. Notably, sectors such as Nifty Auto, FMCG, IT, Pharma, consumer durables, and oil and gas faced substantial drops. Contrarily, Nifty India Defence showed resilience, jumping by 2.1 percent. Gold, a crucial financial indicator, traded at USD 3,295 per ounce, falling by USD 16 or 0.48 percent.

Vinod Nair, Head of Research at Geojit Investments Limited, expressed concerns over persistent market volatility fueled by uncertainties surrounding U.S.-India trade talks. He remarked, "Despite improvements in India's PMI, the global market conditions are leading Indian equities into a consolidation phase. The downgrade in the U.S. credit outlook by a major rating agency also catalyzed selloffs across Asian markets."

Earlier, following a streak of three consecutive session losses, Indian indices surged on Wednesday, spurred by recovery buying at lower levels. As markets brace for further developments, key focuses include the forthcoming India-US trade deal negotiations and GDP data for Q4 expected on May 30 from the National Statistics Office, offering a more comprehensive outlook.

The Indian economy showcased robust growth during 2024, with real-term increases of 6.7 percent, 5.6 percent, and 6.2 percent during the respective quarters of April-June, July-September, and October-December. The NSO's second advance estimates forecast a 6.5 percent growth for 2024-25, underscoring a cautiously optimistic trajectory ahead amidst global economic dynamics. (ANI)

(With inputs from agencies.)