Sensex, Nifty Remain Steady Despite US Stock Market Crash

Despite a major sell-off on Wall Street, Indian stock markets remained largely unaffected on Tuesday, with the S&P BSE Sensex down by less than 170 points at around 11:35 am and the NSE Nifty50 fluctuating between minor gains and losses. While the Sensex initially dropped 400 points, it quickly stabilized, and broader market indices remained relatively flat despite increased volatility.

US-focused IT stocks experienced some pressure due to the Wall Street crash, but the overall sentiment on Dalal Street remained resilient. Experts attribute this stability to the fact that Indian investors had already factored in concerns such as Trump’s tariff policies and the weakening US dollar index.

According to Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, India is now outperforming the US markets. “Over the last month, while the S&P 500 has dropped 7.5%, the Nifty has only declined by 2.7%. Additionally, the dollar index has weakened from 109.3 when Trump took office to 103.71 now, which could benefit emerging markets like India by reducing capital outflows,” he explained.

He advised investors to remain calm during the market correction and focus on accumulating high-quality large-cap stocks, while being selective with mid and small-cap investments.

Looking ahead, domestic investors will closely monitor US and India retail inflation data, which could influence global stock markets, including Wall Street and Dalal Street.