Although the benchmark indices opened flat, they traded negatively throughout the session and ultimately closed red.
Indian equity benchmarks, Sensex and Nifty50 indices, fell sharply, tracking heavy sell-off in metal, IT, and PSU bank stocks. Decline in global equities also exerted pressure on domestic equities.
At the closing bell, the BSE Sensex closed points 893 lower (down 1.1%)
Meanwhile, the NSE Nifty closed 279 points lower (down 1.1%)
Power Grid Corp, Axis Bank, and Sun Pharma were the top gainers today.
Infosys, TCS, and Tata Steel, on the other hand, were among the top losers today.
The GIFT Nifty was trading at 23,820, with 10 points higher at the time of writing.
The BSE 150 Midcap index is trading 0.8% lower, and the BSE 250 SmallCap index is trading 0.6% lower.
Barring the healthcare sector, all other sectoral indices were trading negatively today, with the metal sector and IT sector witnessing selling pressure.
The rupee is trading at Rs 94.7 against the US$.
Gold prices for the latest contract on MCX are trading 1% lower at Rs 1,46,600 per 10 grams.
Meanwhile, silver prices were trading 3% lower at 2,27,611 per 1 kg.
6 reasons why Indian share markets are falling:
#1 Weak Global Trends:
Asian markets saw a sharp decline, with South Korea's KOSPI falling over 8% and triggering a trading halt. Japan, Hong Kong, and China also ended lower, while US futures pointed to a weak opening.
#2 Selling by FIIs:
Foreign investors continued to sell Indian equities, adding pressure on the domestic market.This sustained outflow weighed on overall investor sentiment.
#3 Rupee Declines:
The Indian rupee weakened slightly to 94.69 against the US dollar as the dollar strengthened globally.Expectations of US rate hikes and global uncertainty also kept the currency under pressure.
#4 Selling in IT And Metal Stocks:
IT stocks fell due to weak global demand outlook, with major names like Infosys and TCS declining.Metal stocks also slipped as global prices weakened and rate hike concerns rose.
#5 Profit booking:
After recent market gains, investors booked profits, leading to selling pressure.Sensex and Nifty had rallied in previous sessions, prompting traders to lock in gains.
#6 Weekly Expiry:
Today is the weekly expiry of Nifty derivatives, which typically increases market volatility.Traders adjust or close positions, leading to sharp intraday swings.
Syrma SGS Forms EMS Joint Venture
Syrma SGS Technology Limited has entered into an agreement with Kaga Electronics India Private Limited to form a joint venture company (JV) in India.
The main purpose of this partnership is to set up and operate a modern, advanced Electronics Manufacturing Services (EMS) facility in India, with a focus on serving Japanese customers.
In the proposed joint venture, Syrma SGS will hold a 60% stake, while Kaga Electronics will own the remaining 40%, subject to necessary approvals and conditions.
The board of the new company will have four directors in total - two nominated by Syrma SGS and two nominated by Kaga Electronics, ensuring equal representation in decision-making.
Both partners will have certain standard rights to protect their interests, including rules on share transfers (such as giving the other partner first right of refusal), approval rights for key business decisions, and provisions related to future funding requirements of the company.
As part of the initial investment, Syrma SGS will invest around Rs 150 million (m), while Kaga Electronics will invest around Rs 100 m. Any future share issuance will be done at fair market value based on proper valuation, as agreed under the terms of the partnership.
Info Edge Startup Portfolio Boosts Sentiment
Info Edge shares saw buying interest on Tuesday after the company shared details of its startup investment portfolio across AI, deeptech, and consumer technology.
Since 2020, the company has invested around Rs 10,030 million in 54 AI and deeptech startups, often entering at an early stage before these sectors gained strong global attention. These investments cover areas such as enterprise AI, robotics, semiconductors, space technology, biotech, and electric mobility.
The AI portfolio has performed strongly, with investments of about Rs 6,140 million in 28 startups now valued at around Rs 12,680 million. This reflects more than a 2x return, with several companies attracting follow-on funding from major global investors.
In deeptech, Info Edge has invested around Rs 4,550 million across 30 startups, now valued at about Rs 5,590 million. While this segment is still at an early stage, several companies are beginning to show strong potential and are receiving support from government programmes.
The consumer technology segment remains the largest part of the portfolio, with investments of about Rs 27,550 million across 45 startups, now valued at over Rs 372,140 million. Overall, the company's total startup portfolio stands at around Rs 49,000 million invested, now valued at approximately Rs 413,000 million, reflecting strong long-term value creation across AI, deeptech, and consumer internet sectors.
Comments
Log in or sign up to join the conversation.