The Indian stock market witnessed sustained volatility on Thursday, with benchmark indices Sensex and Nifty extending losses for the fifth consecutive session. The Sensex declined by 344 points, closing at 81,758, while the Nifty slipped by 96 points to end at 25,074, reflecting cautious investor sentiment amid global and domestic uncertainties.
Market analysts attributed the downturn to a combination of global economic concerns and domestic factors. On the international front, fears of possible tightening measures by the U.S. Federal Reserve and uncertainty over global growth prospects weighed heavily on investor confidence. Domestically, persistent Foreign Institutional Investor (FII) outflows continued to pressure the markets, with net sales recorded over the past week.
Sectoral performance showed broad-based weakness. The Information Technology (IT) sector and Automobile stocks were among the major laggards. Leading IT firms saw declines following mixed quarterly earnings, while the automobile sector was impacted by rising input costs and subdued demand forecasts. Banking stocks, however, managed to hold ground amid expectations of stable credit growth and supportive policy measures.
Trading volumes were moderate, with investors showing caution ahead of upcoming economic data releases. Analysts point to upcoming GDP growth numbers and inflation data as critical factors likely to influence market direction in the near term.
Despite the short-term downturn, experts believe the market could regain momentum if positive cues emerge from corporate earnings and macroeconomic indicators. “While volatility is expected to persist, long-term fundamentals for the Indian economy remain intact,” said a senior market strategist.
Investors are advised to monitor developments closely, with an eye on both global monetary policy shifts and domestic economic indicators. The coming weeks could prove decisive for the broader market trend, with sentiment hinging on fresh data and corporate performance.
