The Indian stock markets witnessed a sharp decline on May 9, 2023, with the BSE Sensex plunging over 500 points and the NSE Nifty 50 index falling below the 22,150 mark. This extended a four-day losing streak for both indices, which have been under pressure due to factors such as upcoming Lok Sabha elections and global economic headwinds.
Losses were widespread across various sectors, with oil and gas and construction companies facing the brunt of the sell-off. Larsen & Toubro (L&T) emerged as the biggest laggard on Nifty 50 after the company lowered its future margin guidance for fiscal year 2025. In contrast, automobile companies emerged as the top gainers, with Hero MotoCorp’s shares surging by over 5% following the release of its strong quarterly results.
Global markets also exhibited mixed trends. Asian bonds witnessed a decline, while selling pressure in US Treasuries supported the dollar. Equities in the region saw a mixed performance, with gains in Japan and China offset by losses in Australia and South Korea.
Experts attribute the ongoing market weakness to a combination of factors, including uncertainty surrounding the upcoming Lok Sabha elections, ongoing geopolitical tensions, and fears of a global economic slowdown. Investors are advised to monitor the situation closely and make informed decisions based on their risk tolerance and investment goals.
