Stock Market News: India Sees 4-Day Downtrend
The uncertainty over the India-US trade deal and the heavy outflow of foreign capital have been major contributors to the downturn, with investors losing over ₹13 lakh crore in the past four sessions. The market will be closely watched for any signs of recovery, with the global economic scenario also being closely monitored.
The Indian stock market has been experiencing a downtrend for four consecutive sessions, with the Sensex crashing over 2,100 points and the Nifty 50 falling 2.5 per cent, resulting in a loss of over ₹13 lakh crore in investor wealth.
The key factors driving the market down include uncertainty over the India-US trade deal, heavy outflow of foreign capital, weak earnings from Indian corporates, and lack of fresh positive triggers. Foreign portfolio investors (FPIs) have sold Indian equities worth ₹36,591 crore in July so far, further exacerbating the situation. Additionally, technical factors such as the Nifty 50 falling below 24,700 have led experts to believe that the market may remain weak as long as it is below 25,000.
The downturn in the stock market has also led to a revision in GDP growth forecasts, with the Asian Development Bank (ADB) reducing its estimate to 6.5 per cent for FY26, down from 6.7 per cent. India Ratings and Research has also lowered its FY26 GDP growth forecast for India to 6.3 per cent. The global economic scenario has also been affected, with US stocks falling after Federal Reserve Chairman Jerome Powell cast doubt on the possibility of a September interest rate cut.
The Indian stock market will be closely watched in the coming days to see if it can recover from the current downtrend. With the August 1 deadline for the India-US trade deal looming, investors will be looking for any positive triggers to boost the market. However, with the current uncertainty and weak earnings from Indian corporates, it remains to be seen if the market can regain its momentum.