Stock markets snap 3-day rally; Sensex tumbles 504 points

After starting the trade on a bearish note, the 30-share BSE Sensex further dropped 503.76 points or 0.60% to settle at 83,313.93. During the day, it tanked 666.07 points or 0.79% to 83,151.62.

Mumbai: Benchmark indices Sensex and Nifty ended lower on Thursday, snapping a three-day rally, amid a weak trend in global stock markets.

After starting the trade on a bearish note, the 30-share BSE Sensex further dropped 503.76 points or 0.60 per cent to settle at 83,313.93. During the day, it tanked 666.07 points or 0.79 per cent to 83,151.62.

The 50-share NSE Nifty declined 133.20 points or 0.52 per cent to end at 25,642.80.

From the Sensex firms, Eternal, Bharti Airtel, Bharat Electronics, ITC, Infosys, Reliance Industries, ICICI Bank and Asian Paints were among the major laggards.

Trent, Tata Steel, State Bank of India and Bajaj Finance were the gainers.

In Asian markets, South Korea's Kospi ended nearly 4 per cent lower. Japan's Nikkei 225 index and Shanghai's SSE Composite index also ended in the negative territory, while Hong Kong's Hang Seng index settled higher.

European markets were trading lower.

"Indian equities saw consolidation, as weakness was followed by a sharp rally in recent sessions driven by optimism around the US–India trade deal, suggesting profit booking was at play.

"Global cues added further pressure, with concerns over a broad-based tech sell-off in international markets and heightened US–Iran tensions leading to risk-off sentiment," Vinod Nair, Head of Research, Geojit Investments Limited, said.

US markets ended mostly lower on Wednesday. The Nasdaq Composite index tumbled 1.51 per cent and S&P 500 declined by 0.51 per cent. The Dow Jones Industrial Average ended 0.53 per cent higher.

Market participants are now turning their attention to the upcoming RBI policy meeting, Nair added.

"Indian equity markets traded in a tight range, signalling a wait-and-watch phase as investors remained cautious in the absence of fresh domestic triggers. While overall sentiment remained stable, the benchmarks struggled to sustain momentum at higher levels, reflecting a lack of follow-through buying despite earlier positives," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.

Market participants remain on the sidelines, awaiting clearer signals from global macro developments, trends in foreign institutional flows, and further clarity on the progress of US–Iran negotiations to determine the market’s next decisive move, he added.

Foreign institutional investors bought equities worth Rs 29.79 crore on Wednesday, according to exchange data. Domestic Institutional Investors (DIIs) also bought stocks worth Rs 249.54 crore in the previous trade.

Brent crude, the global oil benchmark, dropped 1.32 per cent to $68.54 per barrel.

On Wednesday, the Sensex ended 78.56 points or 0.09 per cent higher at 83,817.69. The Nifty went up by 48.45 points or 0.19 per cent to settle at 25,776.