Indian Stocks Stumble Amid Global Economic Concerns

Indian stock markets opened lower on Thursday, reflecting weak investor sentiment due to global economic concerns. The Sensex and Nifty saw declines as majority of Nifty 50 stocks fell. Market expert Ajay Bagga discussed the challenges, including expectations around the Union Budget and global monetary policy impacts.

The Indian stock markets took a hit on Thursday as selling pressure dragged indices into the red. The Sensex opened 175.15 points lower at 76,229.84, while the Nifty fell by 51.20 points to 23,104.15, reflecting a challenging start to the trading day.

Investors displayed a lack of confidence, with a predominantly negative market breadth among Nifty 50 companies. Only 10 stocks advanced, while 40 declined and one remained unchanged. Despite the overall gloomy atmosphere, Ultra Cement, Wipro, TCS, Grasim, and Infosys emerged as top gainers, offering a glimmer of hope.

Market expert Ajay Bagga offered insights into the broader dynamics affecting the bourses. He noted India's status as one of the most underweight markets in global investor perception, compounded by low expectations surrounding the upcoming Union Budget 2025. Bagga pointed to subdued investor confidence, a lack of pre-budget rally, and the expected Bank of Japan rate hike as contributing factors to the market's woes.

Bagga suggested that the impending Bank of Japan rate adjustment might exacerbate investor caution, particularly affecting the Yen carry trade, and signaling more potential stock market sell-offs. With the Union Budget around the corner, markets continue to grapple with low expectations, influenced by a slowing economy, tepid corporate earnings, and an absence of counter-cyclical policy measures.

(With inputs from agencies.)