Indian stocks slump tracking weakness in US markets; Sensex dives over 600 points

New Delhi [India], May 22 (ANI): Indian stock indices slumped on Thursday, taking negative cues from the US peers which have declined over weak fiscal sentiment.
Sensex closed at 80,951.99 points, down 644.64 points or 0.79 per cent, while Nifty closed at 24,609.70 points, down 203.75 points or 0.82 per cent.
Barring Nifty media, all the sectoral indices were in the red. Nifty auto, Nifty FMCG, Nifty IT, Nifty Pharma, Nifty consumer durables, Nifty oil and gas slumped the most.
Nifty India Defence jumped 2.1 per cent. Gold, a key indicator of the financial sector, was trading at USD 3,295 per ounce, down USD 16 or 0.48 per cent.
"Despite a notable improvement in India's PMI in May and uptick in fiscal scenario, ongoing uncertainty around U.S.-India trade negotiations and persistent global market volatility are likely to keep Indian equities in a consolidation phase in the near term," said Vinod Nair, Head of Research, Geojit Investments Limited.
"Adding to the pressure, a major credit rating agency's downgrade of the U.S. credit outlook sparked broad-based selloffs across Asian markets," Nair added.
On Wedneday, after three straight session losses, Indian stock indices had soared, possibly due to buying at relatively lower levels. The indices had slumped in the past three sessions, possibly due to profit booking.
After three straight session losses, Indian stock indices soared on Wednesday, possibly due to buying at relatively lower levels.The indices had slumped in the past three sessions, possibly due to profit booking.
Going ahead, investors now await further updates on India-US trade deal negotiations. US, Commerce Minister Piyush Goyal earlier this week had "good discussions" with US Commerce Secretary Howard Lutnick about expediting the first tranche of the India-US Bilateral Trade Agreement.
For Indian stock markets, key monitorables going ahead are Q4 GDP numbers and global cues. The official GDP data for Q4 2024-25 is scheduled to be released on May 30 by the National Statistics Office, along with the annual GDP for 2024-25.
During the April-June, July-September, and October-December 2024 quarters, the country's economy, in real terms, observed a growth rate of 6.7 per cent, 5.6 per cent, and 6.2 per cent, respectively. As per the second advance estimates of NSO, the country's economy is projected to grow at 6.5 per cent in 2024-25. (ANI)