Business

IIE DIGITAL DESK : Indian stock markets witnessed a sharp selloff on the final trading session of the week as benchmark indices plunged under heavy selling pressure, wiping out nearly ₹5 lakh crore from investor wealth. The domestic market witnessed bearish sentiment right from the opening bell, with both major indices showing downward movement throughout the trading session. The crash reflected a combination of global uncertainty, foreign fund outflows and currency pressure.

The benchmark index of Bombay Stock Exchange closed with a loss of 961 points, settling at around 81,287 points, while the primary national index of National Stock Exchange of India fell by 318 points, registering a decline of nearly 1.25 percent. The Nifty 50 index slipped below the 25,100 mark during intraday trading, though it later recovered slightly to close near 25,178 points. Market analysts believe the sharp decline was driven by multiple macroeconomic and geopolitical factors affecting investor confidence.

Foreign institutional investor activity emerged as one of the major triggers behind the downturn. Market data suggested that foreign institutional investors sold shares worth approximately ₹3,466 crore in the previous session. Heavy selling by foreign investors tends to create immediate pressure on Indian equities because large capital withdrawal reduces liquidity and pushes benchmark indices downward.

Global market weakness also played a significant role in shaping domestic sentiment. The technology heavy Nasdaq Composite index in the United States experienced downward movement after a previous rally in tech stocks lost momentum. Shares of major global technology companies also declined, including a nearly 5 percent drop in Nvidia Corporation shares. Meanwhile, stocks of Alphabet Inc. fell around 2 percent, and Amazon.com Inc. declined by more than 1 percent. Semiconductor firm Advanced Micro Devices saw its shares drop by over 3 percent, although Salesforce Inc. gained more than 4 percent due to strong earnings performance. These global movements created ripple effects across international markets including India.

Geopolitical uncertainty further added to investor caution. Ongoing discussions between the United States and Iran regarding nuclear programmes have failed to produce a final agreement, raising concerns about potential regional tensions. Market participants fear that any escalation could disrupt global oil supply chains and trigger volatility in financial markets.

Currency weakness also contributed to market pressure. The Indian rupee opened around 90.9475 against the US dollar, slightly weaker compared to the previous session’s level of 90.9050. A weaker rupee generally discourages foreign investment flows and increases import costs, particularly for energy and raw materials.

Sectoral performance remained broadly negative during the trading session. Metal, automobile, banking, financial services and fast moving consumer goods segments recorded significant declines, while information technology and media indices showed relatively better resilience compared to other sectors.

Market experts believe that the current correction reflects global risk sentiment rather than domestic economic weakness. Investors are advised to remain cautious and monitor international developments, foreign fund movements and currency trends as market volatility may continue in the near term.