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Indian equity benchmarks hit 8-month low

Equity Low

Equity Low

Indian equity benchmarks slid to eight-month lows on Monday as concerns over slowing U.S. economic growth and persistent foreign fund outflows spooked investors. The Sensex plunged over 800 points, while the Nifty fell below the 22,550 mark. The market weakness was attributed to fears of a potential slowdown in the U.S. economy, which dampened the outlook for international trade and investment.

The sell-off in Indian equities was further exacerbated by a withdrawal of foreign funds, with overseas investors offloading stocks in response to the uncertainty. Analysts pointed to rising interest rates in developed economies, which made their markets more attractive relative to emerging ones like India. “The fear of a recession in the U.S. is having a ripple effect on global markets, and India is feeling the heat,” said Vivek Kumar, a senior market analyst in Bengaluru.

“With foreign investors pulling out, the immediate outlook appears bleak.”

Several key sectors took a hit, with technology, banking, and auto stocks among the hardest hit. Major companies such as Infosys, ICICI Bank, and Tata Motors saw their shares decline sharply. Markets also remain on edge over U.S. President Donald Trump’s threat to impose reciprocal tariffs on India and China.

Indian benchmarks fall amid global tension

Trump announced the imposition of reciprocal tariffs, stating, “Whatever a company or a country, such as let’s say India or China or any of them, whatever they charge, we want to be fair … so reciprocal. Reciprocal meaning, ‘they charge us, we charge them’.”

Foreign Institutional Investors (FIIs) have been relentlessly selling Indian equities, with outflows exceeding Rs 1 lakh crore in 2025 amid global trade concerns.

“The market is facing headwinds from relentless FII selling and global uncertainties over Trump tariffs. The sharp rise in Chinese stocks is another near-term challenge,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. Despite the bearish trends, some experts believe that this dip might present a buying opportunity for long-term investors.

“While the short-term outlook is worrisome, the fundamentals of the Indian economy remain strong. Investors with a long horizon can look at this as a chance to accumulate quality stocks at lower prices,” added Indranil Sarkar, an analyst. Indian markets are expected to remain volatile as they continue to react to global economic cues and domestic developments.

Investors are advised to stay cautious and keep an eye on international policy changes that could impact market dynamics.

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