Profit Booking Drags Indian Markets Down After Trade Deal Spark

The Indian stock market indices closed lower on Thursday, with experts pointing to profit booking after a recent surge following the US-India trade agreement. The Sensex settled at 83,313.93, decreasing by 503.76 points, or 0.60%, while Nifty fell by 133.20 points to close at 25,642.80, marking a 0.52% drop.

Vinod Nair, the Head of Research at Geojit Investments Limited, observed that the Indian equities saw consolidation, with a sharp rally giving way to profit-taking. Global economic influences, including apprehensions surrounding a widespread sell-off in technology stocks and US-Iran tensions, contributed to the cautious market sentiment.

Ponmudi R, CEO of Enrich Money, highlighted that the equity markets have been trading in a tight range, with an absence of new domestic catalysts keeping investors in a wait-and-watch phase. The market's focus now shifts to the Reserve Bank of India's policy meeting, with the central bank recently describing India’s economic situation as a 'rare goldilocks period’ characterized by high growth and low inflation.