The stock markets have experienced their ninth consecutive session of decline as bearish sentiment tightens its grip on Dalal Street. All sectors have turned red, and the India VIX has surged by 7%, reflecting heightened market volatility and fear.
In early trade, the broader markets underperformed significantly, with the Nifty Smallcap 100 and Nifty Midcap 100 indices both falling by 2.2%. The persistent selling by foreign institutional investors (FIIs) has played a major role in dragging down market indices. Additionally, the depreciating rupee and reciprocal tariffs on Indian exports imposed by the US have further dampened investor sentiment.
Despite some positive developments such as easing geopolitical tensions and cooling crude oil prices, the overall market sentiment remains negative. Investors are wary of the ongoing global economic uncertainties and are adopting a cautious approach.
Large-cap stocks have been relatively more resilient, but the mid-cap and small-cap segments have borne the brunt of the sell-off. Market experts advise investors to remain cautious and focus on fundamentally strong companies with good long-term prospects during this period of heightened volatility.
Overall, the markets continue to navigate through challenging times, with bearish trends dominating the current market landscape.