Indian Stock Market Drops for Third Consecutive Day Amid Global Uncertainty

The Indian stock market continued to plummet for the third consecutive day, despite India's impressive GDP growth rate of 7.8% in Q1. On Wednesday, the Sensex dropped by 809 points and Nifty 50 fell by almost 269 points alone.

This led to the erasure of their pivotal levels at 76,500 and 24,000 respectively, resulting in over Rs 6.55 lakh crore worth of wealth being eroded on Indian exchanges.

The decline was attributed to weak global cues, with investors becoming cautious due to rising crude oil prices and bond yields. Brent crude hovered between $95-97 per barrel, keeping inflationary risks high and India's import bills vulnerable.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, stated that the market is 'delicately poised between domestic tailwinds and external headwinds'. He noted that domestic tailwinds from impressive Q1 GDP numbers were big positives for the market, but headwinds such as rising bond yields in the US posed a significant threat.

The 10-year US Treasury yield climbed to its highest level since October 2023 at 4.8%, while the 30-year yield soared to 5.29%. The escalation of tensions between the US and Iran also contributed to the global market's decline, with WTI crude oil prices surging near $91 per barrel and Brent crude nearing $96.