Stocks witness sell-off mirroring global trend; Sensex sheds 886 points - World News Network

New Delhi [India], August 2 (ANI): Stock indices settled sharply lower on Friday, ending the week in the red. At closing, Sensex and Nifty were 1.1-1.2 per cent lower at 80,981.95 points and 24,717.70 points, respectively.
According to analysts, Indian stock markets experienced a sharp fall, tracking a sell-off in the US markets. Weak US manufacturing activity raised concerns that the economy might be slowing faster than anticipated.
Also, some profit booking was witnessed in the broader market after the recent bull run.
“The domestic market saw a broad-based sell-off, indicating that it may have reached an exhaustion point due to a lack of new triggers for further upward movement. Q1FY25 earnings have been lackluster so far, while broader market valuations remain significantly high,” said Vinod Nair, Head of Research, Geojit Financial Services.
“Meanwhile, despite the US Fed hinting at a rate cut in September, global markets are consolidating as this move has already been priced in,” Nair added.
Going ahead, from a global perspective, growth data and geopolitical escalations, if any, will remain in focus, said Joseph Thomas, Head of Research, Emkay Wealth Management..
“On the domestic front, stock-specific earnings outcome and RBI policy decision in the coming week may have a bearing on the markets,” Thomas said.
The Indian stock market achieved a new milestone, with both Nifty and Sensex reaching a record high on Thursday. The markets got support from the US Federal Reserve deciding to keep the interest rates unchanged for the eighth straight time.
The index has gained approximately 11 per cent over the past three months, driven by robust GDP growth, controlled inflation, strong domestic liquidity, and favourable monsoon conditions.
A milestone for NSE, the Nifty 50 index hit the 25,000 mark for the first time during Thursday session, and managed to hold on to the gains.
Today, it is, however, a shy below the 25,000 mark.The index hit the 20,000 mark for the first time on September 11, 2023, and took 221 trading days from that level to hit the 25,000 mark on August 1, 2024.
“In a way, the last impetus came from the budget of the financial year 2024-25 and now people will be waiting for RBI interest rates declaration or the Fed interest rate declaration, so those are the kind of new triggers. And of course India is the fastest growing large economy in the world so our own numbers on a quarter basis,” NSE MD and CEO Ashishkumar Chauhan said yesterday, talking to reporters.
“So that’s where now slowly the market has realized that it’s a good budget which is going to improve the growth in the economy, and that’s what they are now voting with their money,” he added. (ANI)

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