Indian Stocks Fall to 6-Month Low as Auto Sector Drags Markets

Indian equity benchmarks closed sharply lower on Thursday, with the Nifty 50 index falling to a new six-month low amid a broad market sell-off. The decline was primarily driven by significant losses in the automotive, metals, and consumer durables sectors, according to data from Investing.com.

Broad-Based Sell-Off Hits Mumbai

At the close of trading, the NSE Nifty 50 index was down 0.88%, while the BSE Sensex 30 index fell 0.79%. The market breadth indicated widespread negative sentiment, with decliners significantly outnumbering advancers.

On the India National Stock Exchange (NSE), 1,941 stocks fell compared to 687 that advanced. Similarly, on the Bombay Stock Exchange (BSE), 2,833 stocks declined while 1,279 gained. This broad-based selling pressure points to weak investor confidence across the market.

Auto Stocks Lead Declines

The auto sector bore the brunt of the selling pressure, with several major manufacturers among the day's worst performers. Some of the most significant losses on the Nifty 50 included:

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• Bajaj Auto Ltd. (NSE:BAJA): -7.62%
• Maruti Suzuki India Ltd. (NSE:MRTI): -5.16%, hitting a new 52-week low.
• Shriram Finance Ltd. (NSE:SHMF): -4.14%

Several other major companies, including Mahindra & Mahindra and Tata Steel, also saw their share prices fall to new lows. In contrast, technology stocks offered a pocket of strength, as Infosys Ltd. (NSE:INFY) emerged as the top gainer on the Nifty 50, rising 3.50%.

Volatility Spikes, Rupee Weakens

Investor anxiety appeared to be on the rise, as reflected by the India VIX, a key measure of expected market volatility. The index jumped 6.80% to 14.41, its highest level in one month, signaling increasing uncertainty among traders.

In the currency market, the Indian Rupee weakened against a stronger U.S. dollar. The USD/INR pair rose 0.32% to 96.42. Elsewhere, commodity markets saw gains, with benchmark Brent crude oil futures rising 2.13% to trade at $100.12 a barrel.