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Global Markets Drag Indian Stocks Down
13 Feb
Summary
- Indian equity indices Sensex and Nifty fell over 1%.
- Sell-off driven by metal, IT, and commodity stocks.
- Global market weakness and AI disruption fears cited.
Benchmark equity indices, Sensex and Nifty, experienced a significant decline, falling more than 1% on Friday. This widespread sell-off primarily affected metal, IT, and commodity stocks, influenced by weak global market performance.
The 30-share BSE Sensex dropped 1,048.16 points to close at 82,626.76, while the 50-share NSE Nifty plunged 336.10 points to settle at 25,471.10. The downturn was attributed to fading positive sentiment from a US-India trade deal, now overshadowed by fears of AI-driven disruptions potentially impacting Indian IT companies.
Further contributing to the cautious mood, metal stocks faced profit-booking amid a strengthening dollar index. Reports of Russia potentially returning to dollar settlements heightened concerns over weaker realisations for metal producers. Broader market indices also ended in the negative territory, with most sectors closing in the red.
Global markets mirrored this weakness, with Asian indices like Hong Kong's Hang Seng, Shanghai's SSE Composite, Japan's Nikkei 225, and South Korea's Kospi closing lower. US equities had ended significantly down on Thursday. Despite this, foreign and domestic institutional investors were net buyers of Indian equities on Thursday.
