Domestic equity markets continued to trade in the red on Thursday afternoon as geopolitical tensions between India and Pakistan weighed heavily on investor sentiment. The Nifty 50 index slipped below the 24,250 mark, while the Sensex also registered a noticeable dip. Additionally, market volatility heightened as traders prepared for the monthly F&O expiry.
As of 2:25 PM IST, the Sensex dropped 265.68 points or 0.33% to trade at 79,850.81, while the Nifty lost 81.95 points or 0.34%, bringing it down to 24,247.
The mid-cap and small-cap segments showed mixed trends. The BSE Mid-Cap index slipped by 0.17%, whereas the Small-Cap index managed to gain 0.21%. Market breadth on the BSE was slightly positive, with 2,019 stocks advancing, 1,869 declining, and 148 remaining unchanged.
Investors React to Diplomatic Measures
Following Tuesday’s devastating terror attack in Pahalgam, which claimed 26 lives, India has announced a series of strong diplomatic and economic countermeasures against Pakistan. These include suspending the Indus Waters Treaty, shutting down the Wagah-Attari border, and cancelling visas for Pakistani nationals.
Investors are now watching closely to see how these steps impact cross-border relations and the broader market sentiment in the coming sessions.
Global Cues and Economic Updates
Adding to the uncertainty, the World Bank has revised its growth forecast for India, trimming it by 0.4 percentage points to 6.3% for FY25. The downgrade reflects growing concerns over global instability and its potential to impact growth across South Asia.
IT Stocks Decline After Previous Rally
The Nifty IT index was down 0.48% to 53,244.65, following a strong 4.4% rally in the previous session. Key losers included:
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Coforge (-1.01%)
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Mphasis (-0.95%)
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Wipro (-0.72%)
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HCL Tech (-0.58%)
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LTIMindtree (-0.55%)
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TCS (-0.49%)
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Infosys (-0.48%)
Key Market Indicators
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10-year bond yield rose to 6.454%
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INR/USD: Rupee edged higher to ₹85.38
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MCX Gold Futures (June): Gained 1.35% to ₹96,006
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US Dollar Index (DXY): Fell 0.54% to 99.37
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US 10-year bond yield: Down 0.93% to 4.346%
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Brent Crude (June): Up $0.36 to $66.48 per barrel
Stocks in Focus
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Black Box hit a 10% upper circuit after announcing ₹1,550 crore in new orders for Q4 FY25.
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Astec Lifesciences dropped 3.20% as net loss widened to ₹16.08 crore in Q4 FY25 vs. ₹0.96 crore YoY. Revenue fell 22.26% YoY.
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Nestle India slipped 0.43%. Net profit declined 5.21% to ₹885.41 crore, but revenue rose 4.48% YoY to ₹5,503.9 crore.