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    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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