Stock Market Closes Flat Amid Trade War Concerns
The stock market experienced a turbulent day as trade war concerns loomed large, leading to a flat close for both the Sensex and Nifty indices. Despite starting strong, the indices ultimately surrendered their gains, with the 30-share BSE Sensex slipping 7.51 points to settle at 74,332.58. On the other hand, the broader Nifty of NSE edged up 7.80 points to close at 22,552.50.
Global Uncertainties Impacting Markets
The ongoing uncertainties surrounding the global trade war have significantly impacted investor sentiment, leading to a risk-off approach in the market. The recent imposition of tariffs by the US and subsequent counter threats have created a sense of ambiguity, causing investors to shy away from equities. Emerging markets, in particular, have faced significant outflows as a result of these uncertainties.
Vinod Nair, Head of Research at Geojit Financial Services, highlighted the prevailing market conditions, stating, “The global market is experiencing heightened uncertainty due to US tariff impositions and counter threats from its peers. This ambiguity has led to increased risk aversion and diminished appeal of equities. EMs have been particularly affected, experiencing significant outflows.”
Resilience of Indian Markets
Despite the global turmoil, Indian markets have displayed a certain level of resilience, holding steady in the face of looming trade tensions. While the S&P 500 index is signaling a deeper correction, reflecting concerns about the potential impact of tariffs on the US economy, Indian markets have managed to weather the storm to a certain extent.
Market Performance and Sectoral Gainers
From the Sensex pack, several stocks posted gains, including Zomato, IndusInd Bank, NTPC, Infosys, HCL Technologies, Titan, Power Grid, Hindustan Unilever, Tech Mahindra, and ITC. On the flip side, stocks such as Reliance Industries, Nestle India, Tata Motors, Adani Ports, Tata Steel, UltraTech Cement, and Kotak Mahindra Bank ended the day in the red.
Market Trends and Global Impact
Across Asian markets, Tokyo, Shanghai, Hong Kong, and Seoul closed lower, reflecting the broader trend of market uncertainty. European markets also traded lower during the mid-session deals, following a similar pattern of decline. Additionally, Wall Street closed lower on Thursday, further adding to the global market turmoil.
Investor Activity and Oil Prices
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,377.32 crore, while Domestic Institutional Investors (DIIs) bought equities worth Rs 1,617.80 crore on a net basis on Thursday, according to exchange data. In the commodities market, global oil benchmark Brent crude rose 1.32 per cent to USD 70.38 a barrel, reflecting the ongoing volatility in the energy sector.
Outlook and Expert Analysis
Looking ahead, there is cautious optimism that a recovery in corporate earnings could significantly improve domestic sentiments. Vinod Nair suggested that investors may consider going overweight on large caps given the stability in earnings and increasing valuation comfort.
Closing Thoughts
On Thursday, the stock market witnessed a notable uptick, with the BSE Sensex jumping 609.86 points to settle at 74,340.09, marking its second consecutive day of gains. The broader Nifty of NSE also advanced, closing at 22,544.70. Despite the uncertainties plaguing global markets, the Indian stock market continues to navigate these challenges with a sense of resilience and adaptability.
