Benchmark stock market indices closed lower on Thursday with significant selling pressure across various sectors, including finance, IT, and banking. The S&P BSE Sensex dropped 592.67 points to settle at 84,404.46, while the NSE Nifty50 declined by 176.05 points to finish at 25,877.85.
Vinod Nair, Head of Research at Geojit Investments Limited, noted that the market retracted following Powell’s statement hinting at a potential halt to rate cuts in 2025, which subdued expectations of further monetary stimulus. The resulting strength of the U.S. dollar spurred a risk-off sentiment in emerging markets like India, coupled with mixed Q2 earnings and market volatility due to F&O expiry. Additionally, ongoing uncertainties surrounding the Trump-Xi trade talks kept investors cautious.
Few stocks managed to stay positive amidst the bearish trend. Larsen & Toubro led the gainers, up by 0.91%, followed by Bharat Electronics Limited (BEL) with a 0.66% increase. UltraTech Cement, Maruti Suzuki India, and Adani Ports and Special Economic Zone also registered modest gains.
Conversely, several blue-chip companies witnessed notable declines. Bharti Airtel saw the largest drop of 1.54%, followed by Power Grid Corporation of India (-1.35%), Tech Mahindra (-1.33%), Infosys (-1.14%), and Bajaj Finance (-1.04%).
By the closing bell, the Nifty Midcap 100 index dipped by 0.09%, while the Nifty Smallcap 100 fell by 0.10%, and the India VIX, a volatility indicator, rose by 0.79%. Notably, Nifty Metal, Nifty Pharma, and Nifty Realty were among the gainers, while Nifty Auto, Nifty Financial Services 25/50, Nifty FMCG, Nifty IT, Nifty Media, Nifty PSU Bank, Nifty Private Bank, Nifty Healthcare Index, Nifty Consumer Durables, and Nifty Oil and Gas ended in the negative territory.
Overall market sentiment was bearish, influenced by heavy selling in IT, telecom, and financial stocks, although gains in infrastructure and cement sectors partly offset the downturn.