Indian stock markets experienced a downturn today, with the Sensex falling over 150 points and the Nifty dropping below the 25,750 mark. Benchmark indices Nifty and Sensex opened lower, reversing a three-day rally as investors engaged in profit booking at higher levels.
Market Performance:
The BSE Sensex experienced a decline of over 200 points, while the Nifty 50 also fell below the 25,700 level. The Sensex fell 250 points, or 0.30 percent, to close at 83,627.69. During the day, it had dropped more than 600 points to an intraday low of 83,262.79. The Nifty 50 ended 58 points, or 0.22 percent, lower at 25,732.30, after touching a low of 25,603.30.
Broader market indices also reflected this trend. The BSE Midcap index slipped 0.16 percent, while the Smallcap index bucked the trend and rose 0.46 percent. Overall, the market breadth was weak on the BSE, with 2,236 shares falling, while 1,921 shares rose, and 175 shares remained unchanged.
Top Losers:
Among the specific stocks, IndiGo and Trent experienced notable drops, each falling by 2%. Trent led losses, closing 1.5 percent lower. Other significant losers included Larsen and Toubro, and Reliance Industries.
Factors Influencing the Market:
Several factors contributed to this market decline. Profit booking, worries over potential US trade actions, persistent selling by foreign investors, and mixed signals from global markets all played a role in dampening market sentiment. Investors are also cautious because of uncertainty surrounding US trade policy. Concerns about potential tariffs and trade disruptions are weighing on the market.
Rising crude oil prices are also a factor. Higher oil prices tend to worsen India's trade balance and strain government finances, as the country relies heavily on crude oil imports.
Trent's Performance:
Trent shares are in focus after the retailer reported a 3% rise in Q3FY26 consolidated profit and a 15% jump in revenue. Trent reported a 3% rise in its December quarter consolidated net profit to Rs 513 crore, with revenue from operations up 15% to Rs 5,345 crore. On a standalone basis, PAT surged 36% to Rs 640 crore. The company has been expanding its store network, reaching over 1,100 large-box fashion stores across 274 cities.
Expert Opinions and Market Outlook:
Market experts suggest that the markets are likely to remain volatile in the near term. This volatility will be influenced by global developments, ongoing earnings results, and expectations related to the upcoming budget. Investors are closely monitoring key companies like Infosys, TCS, and Airtel, with significant news developments and third-quarter results influencing market movements. IT stocks are facing pressure from new AI tools.
Despite the current downturn, BlackRock CEO Larry Fink remains optimistic about India's long-term prospects, suggesting that the next 20–25 years will be the “era of India". This outlook is based on rising domestic investment, rapid technological adoption, and deeper household participation in the markets.