Selling pressure mounted on the Indian stock markets on Thursday after the Securities and Exchange Board of India (Sebi) regulation on Futures and Options (F&O), and the rising geopolitical tensions.
The Nifty Sensex opened with a sharp decline on Thursday, with the Nifty 50 index down by 1.33 per cent, or 344 points, to open at 25,452.85, while the Sensex opened with a fall of 1,264.20 points, or 1.50 per cent, at 83,002.09 points.
Experts highlighted that globally, markets are witnessing a shift after the Fed rate cut announcements, rising geopolitical tensions and foreign investors pulling money out of Indian markets to invest in other markets like China are other reasons for selling pressure.
"China eating emerging markets lunch, Japan heaving a sigh of relief, US realising things were not bad at all to justify the Fed's 50 basis points rate cut in September and India trying to figure out how the regulators moves to tighten derivatives market speculation will impact the market momentum, all with Israel Iran raising the geopolitical heat on the global risk markets," said Ajay Bagga, Banking and Market Expert.
He further added, India is seeing strong FII net outflows and needs to do more on the policy front to make expensive markets attractive to global capital flows. RBI MPC meets next week, but is expected to stay conservative. At best we can expect a policy stance change to a more dovish outlook. Things are not rosy for Indian markets, but the primary market frenzy continues unabated. Caution amid volatility.
In the broader market, the highest fall was witnessed in the Nifty Next 50, with a decline of 1.27 per cent at the time of filing this report. The volatility index of the Indian stock markets also increased by more than 9 per cent.
In the sectoral indices of the National Stock Exchange (NSE), Nifty Auto led the decline with a fall of more than 2 per cent. Nifty FMCG and Nifty Realty also fell by more than 1.5 per cent. All sectoral indices faced selling pressure except for Nifty Metal, which surged by 0.43 per cent.
Other Asian markets on Thursday remained volatile, with Japan's market surging by more than 2 per cent, while Hong Kong's Hang Seng index declined by more than 4 per cent.
The U.S. markets remained flat on Wednesday, with both the S&P 500 and Nasdaq closing with marginal gains. (ANI)
