Morning Dip: Market Opens on a Weaker Note Amidst Global Pressure
Monday morning was not so cheerful for Indian investors. The stock market saw a red beginning with international indications appearing dismal. The Sensex dropped over 600 points and the Nifty dropped over 160 points shortly after the opening bell tolled.. It seemed like one of those slow beginnings when nothing appeared to lighten up the mood. The specter of weak Asian markets and trade tensions abroad kept the traders apprehensive.
Dramatic Plunge: Sensex Declines Over 800 Points in Early Trade
By 9:30, things had deteriorated. Sensex plunged as low as 80,688, down by over 800 points. Nifty also joined the downtrend, slipping to 24,538. There was selling pressure across the board, particularly in the metal and tech stocks. The big boys like Tata Steel, HCL Tech, Infosys, and Reliance were the major drags. The investors were clearly jittery. At one point, it seemed that the market would not recover.
Midday Turnaround: Sensex Hits 81,000 Mark All Over Again
But markets have a way of turning around. By late noon, the tide reversed. Some investors who had pulled out went back in, perhaps smelling opportunity. Sensex regained about 700 points and returned to above the 81,300 mark. Nifty also reduced its losses and traded at about 24,750. That’s the sort of melodrama markets just love, panic followed by a melodramatic turn around.
Recovery in Action: Nifty Bounces Back from Day’s Low
Nifty, which had fallen to the day’s low of 24,526, bounced back to 24,728 early in the afternoon. It was still in the red, but not by much. Some of the traders even heaved a sigh of relief. It was as if watching your team get thrashed in the first half, before seeing them pegging back later. The recovery was not total, but it was heartening.
Top Losers & Gainers: PSU Banks, FMCG Soar; IT, Metals Drag
PSU banks and FMCG smiled on investors’ faces while IT and metals lagged. Adani Ports, Nestle, and Hindustan Unilever emerged victorious. In banking, PSU banks demonstrated actual mettle, rising by more than 2%, leading the charge. On the losing side were shares like Tech Mahindra, Tata Steel, and Infosys which simply could not get a breather.
Global Cues: Asian Markets Soft, Trump Ramps Up Steel Tariffs
Part of the soft opening came from global uncertainty. Most Asian markets were down. Then came big news — Donald Trump chose to increase U.S. Import duties on steel were doubled from 25% to 50%. That shook confidence around the world, especially in the markets for metal and steel.
US Market Update: Wall Street Closes Flat After Wild Session
Wall Street was no exception. The Dow barely closed higher, but the S&P 500 and Nasdaq were effectively flat. There was speculation of bid-and-ask on trade agreements, that is between China and the U.S. It kept everyone in suspense, and that did not do much to boost investor confidence.
Geopolitical tensions: Russia-Ukraine conflict escalates
At the same time, tensions on the continent fueled the fire. Ukraine bombarded Russia with drones to destroy planes deep within Russia. Russia retaliated with missiles. Markets hate war reports, and this only served to cause fear.
Domestic Economy: India’s GDP Growth Slows to 7.4%
While this time around in India, Q4 GDP growth at 7.4% was good but a notch below 8.4% of last year. The growth rate for the complete year was about 6.5%. It is okay but not exciting enough to actually propel the market.
Good GST Numbers: May Collection Up 16.4% YoY
There was also some positive news. GST mop-up in May soared 16.4% year-on-year and crossed ₹2.01 lakh crore. That is a good figure and indicates economic activity is continuing, contrary to market chaos.
OPEC Moves and Rising Global Tensions Push Crude Oil Prices Upward
Later, crude also rose. Brent crude rose over 2%, and American crude was not far behind. All those fears of supplies, global tensions, and the glacial movement of OPEC were the main reasons behind that. Rising oil prices always keep us Indians anxious since we get most of it in the form of imports.