Nifty, Sensex open sharply lower amid geopolitical tensions

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On Thursday, Indian stock markets saw severe selling pressure, fuelled by new SEBI futures and options (F&O) regulations and rising geopolitical concerns. The Nifty 50 index dipped 1.33 per cent, or 344 points, to open at 25,452.85. The BSE Sensex also fell sharply, shedding 1,264.20 points, or 1.50 per cent, to start at 83,002.09, reported ANI.

According to the news agency report, market analysts cited global factors such as the Federal Reserve's recent interest rate decrease, increased geopolitical tensions, and foreign investors fleeing from Indian markets in favour of other areas such as China as important reasons for the sell-off.

Ajay Bagga, a banking and market expert, commented: "China is drawing more investment from emerging markets, Japan's market is showing relief, and the US is realising that the recent Fed rate cut may not have been necessary. Meanwhile, India is dealing with the impact of SEBI's new regulations to curb speculation in the derivatives market, while geopolitical tensions between Israel and Iran add to global market uncertainty."

Bagga further added that India is experiencing significant outflows from foreign institutional investors (FIIs), and needs stronger policy measures to attract global capital. "The RBI's Monetary Policy Committee meets next week, but no major changes are expected. At best, we may see a more dovish policy stance. Indian markets remain volatile, and investors should exercise caution," he said.

The Nifty Next 50 index experienced the greatest decrease in the broader market, plunging 1.27 per cent. The volatility index of Indian stock markets soared by more than 9 per cent, the ANI report added.

Nifty Auto led the sectoral index decrease with a drop of more than 2 per cent, followed by Nifty FMCG and Nifty Realty, both of which fell by more than 1.5 per cent. However, Nifty Metal was the only sector to show an increase, climbing by 0.43 per cent.

Other Asian markets remained mixed on Thursday. The Japanese market rose by more than 2 per cent, while Hong Kong's Hang Seng index fell by more than 4 per cent. On Wednesday, US markets closed flat, with only small advances in the S&P 500 and Nasdaq.