StockMarket – Benchmarks Fall Over 1% Amid Broad Selling

StockMarket – Domestic equities ended the final trading session of the month on a weak note, with benchmark indices slipping more than one percent amid widespread selling pressure. Losses were prominent across sectors, particularly in automobile and financial stocks, while information technology shares managed to post modest gains.

Broad-Based Weakness Drags Indices Lower

The S&P BSE Sensex declined by 961.42 points to settle at 81,287.19. Meanwhile, the NSE Nifty50 dropped 317.90 points, closing the day at 25,178.65. The downturn reflected a cautious mood among investors, as market participants trimmed positions across large-cap and frontline stocks.

Selling was visible across multiple sectors, indicating a broad-based retreat rather than pressure confined to a single segment. Auto and banking stocks led the losses, contributing significantly to the downward move in headline indices. In contrast, select IT stocks saw buying interest, helping the technology pack close in positive territory.

Global Uncertainty Weighs on Investor Confidence

Market analysts attributed the decline to a mix of international and domestic concerns. According to Vinod Nair, Head of Research at Geojit Investments Limited, global uncertainties continue to shape investor behavior. He noted that sluggish progress in nuclear negotiations between the United States and Iran has heightened geopolitical tensions in the Middle East, creating unease across global financial markets.

At the same time, ongoing uncertainty surrounding developments in artificial intelligence and its broader economic implications has added another layer of caution. Such factors have encouraged investors to shift towards safer assets, reducing exposure to equities.

Domestic Factors Add to Cautious Sentiment

On the domestic front, the earnings season is drawing to a close, leaving fewer immediate triggers to drive market momentum. With corporate results largely factored in, investors are increasingly focused on global macroeconomic signals and geopolitical developments.

The prevailing tone in the market has turned risk-averse, as foreign institutional investors remain selective in their participation. Analysts suggest that this guarded stance may continue in the near term, especially if global volatility intensifies.

IT Sector Shows Selective Strength

Despite the broader weakness, the IT sector offered a limited cushion. After witnessing corrections in recent sessions, some technology stocks attracted bargain buying at lower levels. However, analysts caution that the overall trend in the sector remains subdued, and sustained upside would depend on clearer global demand signals and currency stability.

The selective recovery in IT shares was not enough to offset the pressure from other heavyweight sectors, but it did help limit deeper losses in the indices.

GDP Data in Focus

Investors are now awaiting India’s third-quarter GDP data, scheduled for release later in the day. Market expectations suggest that the figures may reflect underlying resilience in the economy, even as global headwinds persist. A stronger-than-anticipated reading could provide short-term support and improve sentiment at the margins.

However, market participants remain mindful that broader global developments may continue to influence trading patterns. With volatility expected to resurface periodically, analysts believe benchmark indices could move within a relatively narrow range in the coming sessions.

As the month draws to a close, the latest session underscores the fragile balance between domestic economic strength and global uncertainty. For now, investors appear inclined to adopt a measured approach, closely tracking both macroeconomic data and geopolitical signals before making fresh commitments.