Page 36 - The Indian EYE 061926

BUSINESS & TRADE JUNE 19, 2026 | The Indian Eye 36

Indian Stocks Slide Amid Global Jitters,

But Strong Growth Keeps Economy Resilient

Despite market volatility driven by geopolitical tensions and global uncertainty, strong
economic growth continues to support India’s fiscal and economic outlook.

OUR BUREAU
New Delhi / Mumbai
ndian stock markets ended lower on Thursday
as investors reacted to escalating geopolitical
Itensions in West Asia, rising crude oil prices,
weak global cues and continued selling pressure in
information technology stocks. Yet even as bench-
mark indices struggled, a new report by S&P Global
Ratings underscored the resilience of the broader
Indian economy, highlighting strong growth pros-
pects that are helping cushion fiscal pressures across
the country’s states.
The contrast between short-term market senti-
ment and longer-term economic fundamentals was
evident throughout the trading session.
The BSE Sensex settled 150.63 points, or 0.20
per cent lower, at 73,832.55, while the NSE Nifty
declined 53.35 points, or 0.23 per cent, to close at
23,161.60. Markets witnessed heightened volatility
during the day, opening sharply lower before stag-
ing a partial recovery and then slipping back into
negative territory by the close. Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey, along with ICICI Bank Executive Director Rakesh
Investor sentiment was hit by renewed concerns
surrounding the US-Iran conflict, which pushed Jha, lights a lamp as he graces the India Investor Conference 2026, organised by ICICI Securities, in Mumbai (ANI Photo)
crude oil prices higher and weakened risk appetite
globally. During early trading, the Sensex fell 464.43 early-morning losses. Both Sensex and Nifty now on the back of robust economic expansion which in
points, while the Nifty dropped 142.9 points. Both display a bullish inverted hammer candlestick pat- turn sustains fiscal revenue growth,” S&P Global
indices later recovered and briefly turned positive tern on daily charts, signaling buyer resilience.” Ratings said.
before selling pressure resurfaced. According to Dixena, fresh US-Iran geopoliti- The report emphasised the increasingly import-
Commenting on the market action, Ajit Mish- cal tensions triggered the initial sell-off as surging ant role of state governments in India’s development
ra, SVP-Research at Religare Broking Limited, said, crude oil prices rattled investors. However, aggres- trajectory. “States are responsible for roughly two
“Markets remained volatile on the weekly expiry day sive buying in banking stocks helped support the thirds of total public expenditure, yet local infra-
and ended lower amid weak global cues. After a recovery, even though profit-booking near key re- structure needs continue to be large,” the report said.
subdued start, the Nifty witnessed a swift rebound sistance levels eventually capped gains. According to S&P, the key factor supporting
in the first half; however, the recovery completely The resilience displayed by banking and phar- state finances is India’s strong growth outlook. The
fizzled out as the session progressed.” maceutical stocks reflected a broader theme high- ratings agency expects India’s real GDP growth to
According to Mishra, investor sentiment re- lighted in a separate report released by S&P Global average 6.9 per cent between fiscal 2027 and fiscal
mained fragile due to renewed escalation in West Ratings. While markets remain vulnerable to ex- 2029, making it one of the fastest-growing major
Asia and concerns over elevated global interest ternal shocks, India’s underlying economic growth economies in the world.
rates following stronger-than-expected US inflation continues to provide a strong foundation. The agency also expects debt levels across most
data. He also pointed to persistent foreign institu- In its report, titled Indian States: Strong states to stabilise over the coming years. “Over the
tional investor outflows and a weaker rupee as fac- Growth Softens The Blow Of Fiscal Imbalances, next few years, we expect the debt levels for most
tors weighing on market sentiment. S&P Global Ratings said robust economic expan- states to stabilize, with growth in operating reve-
Technology stocks emerged as the biggest drag sion is helping prevent the finances of Indian states nues central to this stabilization,” the report said.
on the market. The Nifty IT index fell more than from deteriorating despite persistent fiscal deficits S&P further highlighted the role of the Reserve
one per cent, while FMCG, PSU Bank, Realty, and rising debt levels. Bank of India and India’s deep domestic capital
Consumer Durables and Chemicals indices also The agency noted that state governments con- markets in ensuring reliable access to funding and
closed in negative territory. Major technology com- tinue to face significant spending pressures as wel- liquidity for state governments.
panies came under pressure amid concerns over fare programmes and infrastructure investments Taken together, the developments present a pic-
global demand trends. remain elevated. Revenue-expenditure mismatches ture of an economy navigating short-term volatility
Despite the weak finish, analysts noted signs of and fiscal deficits are also expected to persist over while retaining strong medium-term fundamentals.
resilience in the domestic market. the next few years. Stock markets remain sensitive to geopolitical risks,
Market analyst Vipin Dixena said, “Indian “These spending requirements will continue global inflation concerns and fluctuations in crude
benchmark indices staged a dramatic turnaround, to weigh on the weak budgetary settings of states. oil prices. Yet India’s growth trajectory continues to
ending flat-to-positive after recovering from sharp That said, we expect credit risks to be manageable, provide a buffer against these pressures.

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