Indian Stock Market on 09.01.25

Indian stock markets stumbled again on Thursday, January 9, with the Nifty closing down 0.69% and the Sensex slipping 0.68%. The Nifty 50, peaking at 23,689.5, dropped as low as 23,503.05, closing off 162 points. The Sensex mirrored that trend, opening at 78,206.21 before plunging over 600 points to 77,542.92. It closed 528 points lower, reflecting a broader weakness that also saw mid and small-cap stocks take a harder hit. The Nifty Midcap 50 sank 0.75%, while the Nifty Small Cap 100 lost 1.35%. These declines are compounded by a sharp drop in market capitalization, which has shed about ₹6 lakh crore in just two days.

Why the downward spiral? Several factors are at play here: foreign investors are pulling out capital, rising US bond yields are making the dollar stronger, and the rupee’s fall isn’t helping either. Meanwhile, global market sentiment isn’t looking too bright, especially with some Asian markets dragging down sentiment. For sectors, it’s a rough ride across the board—except FMCG, which saw a modest gain. Realty, Oil & Gas, IT, and Banking stocks all came under pressure, pulling the broader market deeper into the red.

In the commodities world, gold showed a small uptick, with 24 carat gold rising by ₹130 to ₹7,900 per gram. Meanwhile, silver took a step back, falling by ₹200 to ₹95,500 per kg. Oil prices were stable despite worries about a stronger dollar and the looming US fuel inventories. Brent crude dropped slightly, closing at $76.13 per barrel.

Looking ahead, traders are on edge, awaiting the earnings reports starting with TCS on January 9. While the numbers are expected to show improvement over the last couple of quarters, the market isn’t holding its breath for anything extraordinary. The rising US dollar and bond yields remain a dominant threat, pressuring emerging markets like India, as foreign funds continue to flow out. Investors are also eyeing US interest rate movements and how they will affect global liquidity.

At the same time, the international bond market is seeing significant shifts, especially in the UK. A sharp rise in British bond yields this week has analysts worried about a growing crisis in the UK’s fiscal outlook, further adding to global market uncertainty.

In short, the mood is cautious, with traders bracing for a bumpy ride, especially as geopolitical and economic issues continue to cloud the horizon.