Tech Stocks Suffer as Global Uncertainty Weighs on Indian Markets

Indian stock markets dropped over 1% as tech giants faced selling pressure. Absence of global cues, Trump's economic policies, and weak Asian markets contributed to declines. Expert opinions highlight foreign outflows and geopolitical tensions affecting sentiment, but caution against overinterpreting today's drop with market recovery anticipation.

On Thursday, the Indian stock markets faced significant selling pressure, driven primarily by declines in major tech stocks and a lack of influential global cues. The Nifty 50 index closed at 23,914.15, a drop of 360.75 points, while the BSE Sensex fell by 1,190.34 points to end at 79,043.74, marking a decrease of over 1%.

Market analysts have attributed this downturn to investor concerns surrounding US President-elect Donald Trump's policies, especially the anticipated path for US interest rate cuts. Vinnaayak Mehta, Founder of The Infinity Group, pointed out that the pressure stems from a mix of factors, including the closed US stock market, FII selling, a robust US dollar, and geopolitical issues, all of which are being closely monitored by domestic institutional investors (DIIs) ahead of next month's Indian Union Budget 2025.

By the close of trading on the NSE, most sectoral indices, including Banking, Auto, and IT, recorded declines, although Media and PSU Banks managed to stay in positive territory. Notable gainers were Adani Enterprises, Shriram Finance, and State Bank of India, with significant losers being SBI Life Insurance and Infosys, among others. According to VLA Ambala from Stock Market Today, weak growth and a declining rupee value are prompting FPI outflows. Despite this, experts like Ajay Bagga urge caution in overreacting to the day's declines, suggesting a rebound with the new trading series.

(With inputs from agencies.)