Market Turmoil: Nifty's Sharp Decline Sparks Investor Anxiety

The stock market ended the week on a bearish note, with BSE Sensex and NSE Nifty closing significantly lower. The decline highlights growing investor concerns over India's economic outlook, marked by high inflation, rising unemployment, and geopolitical tensions. Experts suggest potential dip-buying opportunities amidst cautious strategies.

The stock market concluded Thursday's trading on a bearish trajectory, as major indices plummeted sharply. The BSE Sensex suffered a loss of 494.75 points, down by 0.61 per cent, culminating at 81,006.61. Meanwhile, the NSE Nifty faced a steeper fall of 221.45 points, or 0.89 per cent, settling at 24,749.85.

A broad-based selloff characterized the session, with only 9 of the 50 Nifty companies posting gains, while 41 recorded losses. Notable performers included Infosys, Tech Mahindra, Power Grid, and Larsen & Toubro (L&T), along with State Bank of India (SBI), which showed resilience despite overall market weakness.

In contrast, Bajaj Auto, Shriram Finance, Mahindra & Mahindra (M&M), Nestle India, and Hero MotoCorp were significant laggards, contributing to the indices' pronounced declines. VLA Ambala, Stock Market Today's Co-Founder, remarked on the ongoing correction, highlighting Nifty's 6 per cent decline over three weeks and stressing global concerns impacting India's economic prospects.

Ambala stated, "The Nifty has corrected by 6 per cent in recent weeks and may continue to fall, driven by weak global sentiment regarding India's GDP growth, fiscal deficit, and geopolitical tensions." She suggested this downturn could present opportunities for investors seeking dip-buying prospects in outperforming stocks.

Advising caution, Ambala emphasized the importance of monitoring foreign portfolio investors' stock holdings when devising strategies, particularly in the short term. The market reflects broader economic concerns domestically and internationally, with investors vigilant to factors that could sway market sentiment in the upcoming weeks.

(With inputs from agencies.)