- Indian markets reversed gains, with Sensex plunging 788 points and Nifty slipping below 23,500.
- Global markets showed mixed trends; U.S. stocks extended gains, while European markets edged higher.
- FIIs turned net buyers for the fourth session, but Trump’s tariff threats add uncertainty.
The Indian stock market saw a sharp downturn today as banking and pharma stocks dragged the indices lower. After seven consecutive sessions of gains, the Sensex dropped nearly 800 points, and the Nifty fell below the 23,500 mark.
On the global front, U.S. markets extended their gains, driven by optimism over potential softer tariff policies. Meanwhile, European stocks edged up slightly, awaiting the U.K.’s Spring Statement.
Global and Domestic Pressures Shake Markets
The Nifty and Sensex faced a sharp correction today, breaking their seven-day winning streak. Banking and pharma stocks saw significant declines, contributing to the overall weakness. Despite a positive start, the indices took a U-turn, reflecting investor caution.
Meanwhile, foreign institutional investors (FIIs) continued their buying spree, marking their fourth straight session as net buyers. However, domestic investors booked profits, adding to the market pressure. The recent heavy outflows since October, exceeding ₹3 lakh crore, indicate ongoing concerns about economic stability.
Globally, U.S. markets remained in the green for a second consecutive session, with the Nasdaq and S&P 500 leading gains. Asian markets, including Japan’s Nikkei and South Korea’s Kospi, traded positively in early hours, tracking Wall Street’s momentum. However, the Asia Dow remained flat, reflecting mixed sentiment.
In Europe, investor focus was on the U.K.’s Spring Statement, with expectations of budget cuts and additional defense spending. Chancellor Rachel Reeves’ fiscal strategy will play a crucial role in shaping market reactions, especially amid rising borrowing costs and inflation concerns.
Despite strong global cues, Indian equities faced a selloff today, signaling investor nervousness. The short-term outlook remains volatile, with external factors like U.S. tariffs and global inflation trends shaping market sentiment.
“In investing, what is comfortable is rarely profitable.” – Robert Arnott
