The Indian stock market experienced a sharp decline on Thursday, with the BSE Sensex falling 1,045.46 points, or 1.44%, to close at 71,593.24, its lowest level in over two-and-a-half years. The NSE Nifty 50 also slipped to a 21-month low amid heavy selling pressure. This drop followed a surge in crude oil prices and rising expectations of tighter monetary policy both in India and globally, according to livemint.com.
The decline extended losses for the second consecutive session, with the Sensex falling as much as 1,310.95 points intraday. Rate-sensitive stocks, commodities, and FMCG shares faced intensified selling. Hariselvan Radhakrishnan, Founder and CEO of HST Wealth, noted that while the GIFT Nifty indicated a positive opening on Friday near 22,370 points, the rebound might not sustain unless buying broadens beyond short covering, per livemint.com.
This market movement reflects growing concerns over inflation and interest rate hikes as crude oil prices rise globally. The Sensex’s close at 71,593.24 marks a significant technical low last seen in February 2024. The sell-off highlights investor caution amid geopolitical tensions and economic uncertainties, with the Indian market reacting sensitively to global cues such as US bond yields and crude oil volatility, according to livemint.com.
On Friday, the Indian stock market is expected to open higher, with the GIFT Nifty signaling a gap-up near 22,370 points, about 140 points above the previous close. However, sustained recovery will depend on broader market participation beyond short-term trading strategies, Hariselvan Radhakrishnan said, as reported by livemint.com.