Indian equity markets declined on Thursday, weighed down by losses in information technology shares, as uncertainty surrounding the U.S.-China trade deal and escalating geopolitical tensions in the Middle East dampened investor sentiment.
The NSE Nifty 50 index slipped 0.16 pc to 25,101.3, while the BSE Sensex fell 0.2 pc to 82,355.26 as of 10:13 a.m. Indian Standard Time. Broader market indices mirrored the trend, with both small-cap and mid-cap stocks falling around 0.3 pc. Losses were seen across 11 of the 13 major sectoral indices.
The cautious mood in India reflected a broader decline in global equities. Wall Street retreated overnight, and Asian markets remained mixed amid growing concerns over geopolitical risks and vague signals from ongoing U.S.-China trade discussions.
U.S. President Donald Trump stated that a framework agreement on tariff rates had been reached, aimed at reviving the fragile trade truce with China. While this lifted investor hopes briefly, the absence of concrete details left markets jittery.
“The tariff crisis is not over yet. With Trump’s credibility being what it is, it would be too early to discount the development as a positive for markets,” said V.K. Vijayakumar, chief investment strategist at Geojit Financial Services.
Adding to the unease, Iran threatened to target U.S. bases in the Middle East if nuclear negotiations failed and conflict erupted with Washington. Analysts noted that rising security risks in the region could negatively impact India, particularly by driving up Brent crude oil prices.
Indian IT stocks, which derive a significant portion of their revenues from the United States, led the fall with a 1 pc drop in the sectoral index.
Among individual stocks, Paytm plunged 8.4 pc after the Finance Ministry denied media reports suggesting that merchant discount rates (MDR) would be introduced for Unified Payments Interface (UPI) transactions.
In a note, UBS said that any delay or cancellation of MDR introduction would be sentimentally negative for Paytm and could pose a downside risk to the company's core profitability during the 2026–27 fiscal years.
Markets had opened with modest gains, tracking overnight stability in global indicators, but quickly reversed course. The Sensex initially rose by 108.02 points to 82,623.16 and the Nifty gained 38.7 points to 25,180.10 in early trade.
However, both indices fell into negative territory soon after. By mid-morning, the Sensex was down 178.60 points at 82,331.42 and the Nifty dropped 57.15 points to 25,093.75.
From the 30-share Sensex pack, Asian Paints, Bajaj Finserv, Bharti Airtel, NTPC, Adani Ports, HDFC Bank, Bajaj Finance, and Larsen & Toubro emerged as the key gainers. In contrast, Infosys, Tech Mahindra, Tata Motors, and Eternal were among the top laggards.
Across Asia, South Korea’s Kospi and China’s Shanghai Composite were trading in positive territory, while Japan’s Nikkei 225 and Hong Kong’s Hang Seng were in the red. U.S. markets had also ended lower on Wednesday.
Foreign Institutional Investors (FIIs) continued their selling streak, offloading equities worth ₹446.31 crore on Wednesday, according to exchange data.
“The recent flattish trend in the market is likely to continue in the near term since there are no clear positive triggers that can push the market much higher,” Vijayakumar added.
Brent crude oil prices, which had earlier spiked to $70 a barrel amid Middle East tensions, eased slightly to $69.48, down 0.42 pc.
On Wednesday, the Sensex had ended 123.42 points higher at 82,515.14, while the Nifty rose by 37.15 points to settle at 25,141.40.
Follow us
