Sensex, Nifty slide to fresh three-month lows amid global risk aversion

Indian equity benchmarks extended losses to fresh three-month lows as geopolitical tensions, weak earnings and sustained foreign investor selling outweighed late-session bargain buying

Domestic equity benchmarks extended losses on Wednesday, a day after logging their sharpest single-session fall in nearly nine months, as rising geopolitical risks and earnings disappointment kept investors risk-averse.

 

What triggered the latest sell-off in Indian equity markets? 

Fresh concerns emerged after US President Donald Trump threatened to impose tariffs on several European countries if they block his bid to take over Greenland, rekindling fears of a broader trade war and its potential impact on global growth. At home, sluggish corporate earnings, sustained foreign portfolio investor selling, and the lack of progress on the India–US trade agreement continued to weigh on market sentiment.

 

Did markets recover from the day’s lows? 

Although benchmarks recovered from the day’s lows on bargain buying, investors largely viewed the rebound as technical, with markets still ending at multi-month closing lows.

 

Where did Sensex and Nifty close? 

The Sensex, which slipped to an intraday low of 81,124, settled 271 points, or 0.33 per cent, lower at 81,910 — its lowest close since October 8. The Nifty 50 fell to 24,920 during the session before closing 75 points, or 0.3 per cent, lower at 25,158, its weakest close since October 14.

 

How did broader markets perform? 

Broader markets underperformed, with the Nifty Midcap 100 and Nifty Smallcap 100 declining nearly 1 per cent each. The smallcap index ended at its lowest level since May 9. Market breadth remained weak, with declining stocks outnumbering advancing ones by more than two to one.

 

What does recent market performance indicate about investor sentiment? 

Over the past 12 trading sessions, the Sensex and Nifty have posted gains on just two occasions, underscoring persistent selling pressure. Foreign portfolio investors have pulled out $3 billion from domestic stocks this month.

 

Which stocks weighed on the benchmarks? 

Among stocks, ICICI Bank fell 2 per cent after missing earnings estimates, while HDFC Bank declined 1.2 per cent. The two index heavyweights together accounted for the entire decline in the benchmark indices during the session.