MUMBAI: Indian markets opened on a cautious note Thursday, with the Sensex and Nifty experiencing minor declines. The BSE Sensex dropped by 297 points to around 81,204, while the NSE Nifty slipped by 157 points to trade at 24,814. This market trend follows a recent series of fluctuations, with investors closely watching for corporate earnings reports and external economic signals.
The Indian markets are being influenced by several factors that contribute to investor unease. Among these, the U.S. election’s potential impact on international policies has kept global markets vigilant. Coupled with recent declines in Asian markets, these dynamics are affecting capital flows and leading to subdued trading activity. Indian markets are also reacting to rising U.S. Treasury yields, which signal tighter monetary policy and add pressure on capital markets globally.
Additionally, the ongoing conflicts in the Middle East are generating further uncertainty. These geopolitical tensions, alongside higher oil prices and inflation concerns, are leading analysts to expect continued volatility in the coming weeks.
The Indian VIX index, a measure of market volatility, has seen significant fluctuations recently, reflecting investors’ anxiety. Analysts note that domestic political developments leading up to India’s own election in mid-2024 may compound this trend, with the potential for larger market movements expected closer to both election outcomes.
