Stock markets snap three-day rally, Sensex slides 504 points

Indian equity markets experienced renewed volatility on Thursday, ending a three‑day rally as benchmark indices fell sharply amid weak global trends and investor caution.

The BSE Sensex dropped 503.76 points, or 0.60 per cent, to close at 83,313.93, after hitting an intra-day low of 83,151.62. The NSE Nifty fell 133.20 points, or 0.52 per cent, ending at 25,642.80.

Among Sensex stocks, Eternal, Bharti Airtel, Bharat Electronics, ITC, Infosys, Reliance Industries, ICICI Bank and Asian Paints were major laggards, while Trent, Tata Steel, State Bank of India and Bajaj Finance gained.

The volatility stems from a combination of global and domestic factors. Weak trends in Asian markets, including a nearly 4 per cent drop in South Korea’s Kospi and losses in Japan’s Nikkei 225 and China’s SSE Composite, created pressure on Indian equities. In the US, the Nasdaq Composite fell 1.51 per cent and the S&P 500 dropped 0.51 per cent, while the Dow Jones rose slightly. Heightened US-Iran tensions also contributed to a risk-off sentiment among investors.

Domestically, markets saw profit booking after a three-day rally driven by optimism around the US-India trade deal. Investors are also in a wait-and-watch mode ahead of the upcoming RBI monetary policy meeting , resulting in limited follow-through buying.

Foreign institutional investors (FIIs) purchased equities worth Rs 29.79 crore, and domestic institutional investors (DIIs) added Rs 249.54 crore, according to exchange data. Additionally, a 1.32 per cent drop in Brent crude to USD 68.54 per barrel added to market caution.

“Indian markets are experiencing a phase of heightened volatility, reflecting both global uncertainties and domestic investor caution,” said Vinod Nair, Head of Research at Geojit Investments. Ponmudi R, CEO of Enrich Money, added that markets are struggling to sustain momentum without clear domestic triggers, as participants await global macro developments, foreign fund flows, and geopolitical signals.

Earlier on Wednesday, the Sensex had ended modestly higher by 78.56 points, and the Nifty gained 48.45 points, underscoring the recent whipsaw movement in the markets.