Stock Market Drops: Sensex Loses 1,000 Points Following Previous Record High, Nifty Falls 200 Points
Mumbai: Stock Market Plummets Amidst Global Tension Ease
Morning trade in Indian equity markets saw a steep decline today, following a remarkable rally the day prior due to major geopolitical developments. These events included India and Pakistan announcing a ceasefire and the US and China reaching a trade deal.
The market had already started lower in pre-market hours, with the Sensex losing over 400 points. The losses escalated as the day wore on. At 10:30 am, Sensex, composed of the top 30 companies listed with the Bombay Stock Exchange, dropped over 1,000 points. NSE Nifty50 also fell by over 200 points.
Stocks like Infosys, Eternal (Zomato), and HCL Tech were among the worst performers in the Sensex pack, while Sun Pharma, Tech Mahindra, and SBI Bank were among the gainers.
Experts predict that the benchmarks will likely stabilize following Monday's substantial gains. Market analyst Devarsh Vakil, Head of Prime Research at HDFC Securities, believes that buyer interest will continue in small and mid-cap stocks at lower levels.
Meanwhile, Hardik Matalia, Derivative Analyst at Choice Broking, advises traders to steer clear of large overnight positions and implement tight risk controls due to global uncertainties.
The announcement of a ceasefire between India and Pakistan has resulted in a calmer border over the last two days. During the conflict, the markets demonstrated remarkable resilience with only limited losses. The superiority of India's warfare capabilities, coupled with its inherent resilience and robust global and domestic macroeconomic factors, offered momentum, according to experts.
Most Asian stock markets were trading positively as well, with markets in Tokyo, Bangkok, Seoul, and Shanghai in the green. Hong Kong, however, was in the red.
Typically, the Indian markets rally at a significant level when the Trump administration takes a step back from raising tariffs. On April 9, 2025, for instance, the stock market rallied after the Trump administration announced it would temporarily halt tariff increases, leading to major US indices recording their largest gains in years, though they didn't recover to their pre-crash levels[2].
In more recent news, markets have been rising due to strong company performances and significant deals. For example, on May 14, 2025, the S&P 500 and Nasdaq Composite rose, partly due to robust performances by companies like Nvidia, Tesla, and AMD, along with significant deals such as Super Micro Computer's $20 billion agreement with a Saudi Arabian data center company[1].
Later in the day, US markets saw a substantial rise as the two economic superpowers appeared to ease back from a protracted trade war. The Dow Jones Industrial Average surged 2.8%, while the S&P 500 increased by 3.3% and the tech-focused Nasdaq Composite Index closed 4.4% higher.
Investors may find opportunities in the business sector as the calm in global tensions could lead to increased investing in personal-finance, industry, and finance. However, market analyst Hardik Matalia advises caution, encouraging investors to exercise tight risk controls due to ongoing uncertainties, even as the US markets continue their climb in finance and business.
