- Sensex drops over 500 points; Nifty dips below 24,650 amid global pressure
- Crude oil spike and FII outflows weigh on Indian investor sentiment
- Australia’s ASX 200 climbs 0.63%, driven by gains in gold and financial sectors
Indian markets opened on a weak note and continued to decline throughout the day, with the Sensex losing over 500 points and the Nifty briefly falling below 24,600. The sell-off was driven by fears of global economic slowdown, rising crude oil prices, and persistent foreign institutional investor (FII) outflows.
Meanwhile, Australia‘s S&P/ASX 200 posted solid gains, climbing 0.63% and hitting a three-month high. The surge was led by strong performances in gold mining and consumer staples, showing investor confidence in domestic resilience.
Diverging Markets: India Slumps as Australia Surges
Investor sentiment in India remained fragile due to ongoing global trade tensions and the resurgence of crude oil prices, which reignited inflation concerns. Although hopes of a potential RBI rate cut offered some cushion, they weren’t enough to offset broader bearish sentiment. Financial stocks, particularly ICICI Bank and Axis Bank, bore the brunt of the selloff.
The Nifty saw critical support levels tested, slipping below the 24,650 mark. Market breadth in India was mixed, but broader indices like the BSE MidCap and SmallCap showed resilience, suggesting some localized investor confidence in domestic economic fundamentals.
In Australia, a contrasting scenario played out. The S&P/ASX 200 reached a three-month high, buoyed by gains in the gold sector and optimism around consumer spending. The market shrugged off global volatility, instead responding positively to sector-specific momentum.
Additionally, volatility in the Australian market declined, with the S&P/ASX VIX falling by 1.75%. This drop indicated improved investor confidence and reduced market uncertainty. Despite modest losses in key firms like Mineral Resources and Elders, the broader sentiment remained upbeat.
While Indian markets continue to reel from global headwinds and oil price hikes, Australia’s stock exchange shows signs of strength, highlighting diverging investor outlooks.
“Markets can remain irrational longer than you can remain solvent.” — John Maynard Keynes
