MUMBAI, May 22 • Indian stock market slumped hard in a bearish start today as both the Nifty 50 and benchmark indices BSE Sensex tumbled sharply. In the early hours, investors took a cautious view as they countered weak global tones and mounting doubts about the U.S. economy.
The third best was the NIFTY index (off over 190 or nearly 0.8%) as it reeled from sagging below 24,650 in the early Asian hours following weak global cues.
The Nifty 50 index was trading below the 24,650 mark at around 9:30 AM IST, a drop of more than 190. The BSE Sensex also fell significantly, down more than 600 points to the vicinity of 80,970. This multi-sector plunge had all sectoral indices in the red on NSE except for IT, leading the losses, followed by FMCG, pharma, and banking + financial services.
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Analysts said this skid was something that globally markets are having a risk-off day at the moment. There is something to be said about the pull-in of safe assets like gold and Bitcoin in rising numbers, and investor anxiety. Sentiment unsteady over US fiscal deficit fears, post-auction results below expectations as well. Higher US Treasury yields have traditionally been bad for the emerging markets.
There is a pullback right now, but some analysts remain fairly upbeat on the undercurrent strength behind the Indian market, extrapolating firm domestic macro data and positive earnings in certain sectors. Positive spot Q4 is underscored by results from companies that are overweight domestic consumption. A bit of comfort in above-average monsoon rainfall predictions.
Market analysts note that investors are watching global developments and waiting for US tariff news. The market is viewing near-term volatility amidst a medley of both domestic and international spectrums.
