Dalal Streets Decline Sharply, Sensex Closes Over 84,100, Nifty Tests 25,900

The Indian benchmark indices ended lower on Thursday as the Sensex closed at 84,163.66 declining over 797 points and the Nifty ended at 25,868.20 falling over 270 points.

In the 30-share BSE Sensex, among the top gainers were stocks like Eternal, ICICI Bank, Bajaj Finance and Bharat Electronics. Meanwhile,  the laggards included stocks such as Adani Ports, ITC, HDFC Bank, Hindustan Unilever and HCL Tech.

In the broader markets, the Nifty Smallcap 100 tumbled 1.99 per cent as volatility remained extremely high. Sectorally, the Nifty Metal index declined 3.40 per cent.

Previously, during the morning session, the BSE fell over 250 points to open at 84,705 points and the Nifty opened at 26,074 registering a decline of over 65 points.

Institutional Flows Reflect Diverging Investor Sentiment

Foreign institutional investors (FIIs) sold equities worth Rs 1,527.71 crore on Wednesday, while domestic institutional investors (DIIs) purchased shares worth Rs 2,889.32 crore, according to exchange data.

Strong Economic Fundamentals Offer Support

From a fundamental standpoint, there is positive news for the economy and financial markets. Advanced estimates peg India’s GDP growth for FY26 at a robust 7.4 per cent, underscoring the resilience of the economy despite the impact of Trump-era tariffs.

However, this strength may not translate into an immediate market recovery. “This strong fundamental is unlikely to reflect in the market very soon since the much-awaited US-India trade deal, which is critical for India’s sustained growth and macro-economic stability, is not happening. This and the continuing FII selling are impacting the market,” said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.

India Retains Fastest-Growing Major Economy Tag

The Indian economy is expected to grow by 7.4 per cent in the current fiscal year, retaining its position as the world’s fastest-growing major economy despite punitive US tariffs and ongoing geopolitical tensions.

According to the First Advance Estimates released by the Ministry of Statistics and Programme Implementation (MoSPI) on Wednesday, GDP growth for 2025-26 (April 2025 to March 2026) is projected to exceed both the Reserve Bank of India’s forecast of 7.3 per cent and the government’s earlier projection range of 6.3–6.8 per cent.

Markets Cautious Amid Resistance Levels And Global Risks

Market sentiment remains guarded, with benchmark indices facing technical challenges. “With both the Nifty and Bank Nifty holding key support levels but encountering stiff overhead resistance, market sentiment remains cautious amid elevated geopolitical tensions, renewed tariff-related concerns, and continued foreign portfolio outflows,” said Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm.

Global Markets Mixed; Crude Prices Edge Up

In Asian markets, South Korea’s Kospi index and Shanghai’s SSE Composite index traded higher, while Japan’s Nikkei 225 and Hong Kong’s Hang Seng index were lower. US markets ended mostly in the red on Wednesday.

Meanwhile, Brent crude, the global oil benchmark, rose 0.40 per cent to USD 60.20 per barrel.