On May 8, 2025, Indian equity markets experienced a downturn, with the BSE Sensex declining by 412 points (0.51%) to close at 80,288.38, and the Nifty 50 falling by 140 points (0.62%) to settle at 24,195.95.
Key Factors Behind the Market Decline
1. Escalating Geopolitical TensionsRising tensions between India and Pakistan have heightened investor caution, leading to increased market volatility.
2. Global Market WeaknessConcerns over potential U.S. tariffs and retaliatory measures by other nations have led to a global market downturn, impacting investor sentiment in India.
3. Foreign Institutional Investors (FIIs) OutflowsPersistent selling by FIIs, driven by global uncertainties and attractive yields in developed markets, has exerted downward pressure on Indian equities.
4. Mixed Corporate EarningsRecent quarterly results have been a mixed bag, with companies like Asian Paints reporting a 44.93% decline in profit, affecting market confidence. —
Sectoral PerformanceNifty Bank: Declined by 0.45%, closing at 54,365.65. Nifty Next 50: Dropped by 2.14%, ending at 62,760.25.
The Nifty 50 has formed a long negative candle on the daily chart, indicating a continuation of the downward trend. Immediate support is seen around 22,100–22,000 levels, with resistance near 22,400.
