The BSE Sensex closed 503 points lower at 83,313, while the NSE Nifty fell 133 points to settle at 25,642. Selling pressure was visible across most sectors, with metal stocks leading the decline.
Out of the 30 Sensex constituents, 26 ended in the red. Shares of Zomato, Bharti Airtel and Bharat Electronics Ltd declined by up to 2.5%, reflecting widespread risk aversion.
Metal stocks under pressure
The metal sector witnessed the steepest fall, with the index sliding around 1.5%. Analysts attributed the decline to a drop in global metal prices after the US dollar strengthened, making commodities costlier for non-dollar economies. The sector had gained nearly 6% over the previous three sessions, triggering profit booking on Thursday.
Other sectors such as auto, financial services, FMCG, IT, pharma, media, private banks, realty and oil & gas also closed lower. PSU bank stocks were the only pocket showing relative stability.
Global cues weigh on sentiment
Weak global markets added to the negative mood. In Asia, South Korea’s KOSPI plunged 3.86%, while Japan’s Nikkei slipped 0.88%. China’s Shanghai Composite fell 0.64%, though Hong Kong’s Hang Seng managed marginal gains.
US markets provided mixed cues. While the Dow Jones rose 0.53% on Wednesday, the Nasdaq and S&P 500 declined 1.51% and 0.51% respectively. Weak Wall Street futures further dampened sentiment during domestic trading hours.
Caution ahead of RBI policy
Investor caution also stemmed from the ongoing RBI Monetary Policy Committee meeting, with the rate decision due on Friday. Although interest rates are widely expected to remain unchanged, uncertainty around future guidance kept traders on the sidelines.
Foreign Institutional Investors’ buying nearly stalled, with FIIs purchasing shares worth just ₹30 crore on Wednesday, sharply lower than the ₹5,000 crore-plus buying seen a day earlier. Domestic Institutional Investors, however, remained net buyers, investing ₹250 crore.
Volatility and expiry impact
Market volatility rose, with India VIX climbing to 12.28, indicating heightened nervousness. Thursday’s Sensex derivatives expiry further amplified intraday swings due to position unwinding and rollovers.
The decline followed a muted gain on Wednesday, when the Sensex added 79 points and the Nifty rose 48 points, underscoring the fragile nature of the ongoing market momentum.
