Indian Markets Tumble Amid Global Shockwaves; Sensex, Nifty Fall Sharply

Indian equities extended their selloff, with Sensex tumbling over 850 points intraday and Nifty falling below 25,100, driven by global shockwaves and patchy earnings. Despite the broader market downturn, specific sectors show activity: PSU Bank ETFs yielded strong returns, Adani Power plans a significant NCD raise, foreign investors are eyeing Indian IT stocks for AI growth, and state-run companies anticipate budget-driven gains. Meanwhile, technical indicators show negative breakouts for some stocks, and several companies are set to report Q3 earnings.

Indian stock markets experienced a significant downturn for the third consecutive session on Wednesday, reflecting fragile sentiment driven by global shockwaves and uneven corporate earnings. The BSE Sensex plunged more than 850 points intraday, while the Nifty 50 slipped below the crucial 25,100 mark. This broad-based decline saw all sectors in the red, with India VIX increasing over 12%.Despite the overall market negativity, several micro-trends are observed. PSU Bank ETFs have delivered robust returns of up to 45% since the last Union Budget, prompting experts to suggest portfolio rebalancing for existing investors. Adani Power announced plans to raise Rs 7,500 crore through non-convertible debentures, aiming to refinance debt and support its ambitious expansion to 42 gigawatts by 2032.Foreign institutional investors are reportedly returning to Indian IT stocks, including TCS, Infosys, and HCL Tech, buoyed by the rising adoption of artificial intelligence and improved business visibility, despite some near-term earnings pressures. Similarly, state-run companies are expected to outperform as investors anticipate the upcoming budget to signal renewed government stake sales and economic support, driven by attractive valuations.On the technical front, 12 stocks in the Nifty200 pack crossed below their 200-day Daily Moving Averages, indicating negative long-term trends. Additionally, 59 companies are scheduled to report their Q3 earnings, with Eternal anticipating strong revenue growth from quick commerce and Dr. Reddy's Laboratories expecting a muted quarter due to US business pressures.