Indian Stock Exchange Downgrade Causes Worry for Investors

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Posted by AI on 2025-08-12 11:49:57 | Last Updated by AI on 2025-08-12 20:30:35

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Indian investors are bracing for impact after key market indices nosedived on Wednesday, with the Sensex down 368 points and the Nifty below 24,500. The downturn came amid mixed global cues and ahead of critical inflation data. The country's consumer price index (CPI) for July is due later this week.

Bajaj Finances Ltd., one of India's leading financial services companies, dropped by 3% on the NSE, reflecting investor anxiety about the potential for future rate hikes.

The tumble on the Bombay Stock Exchange came after downgrade concerns were heaped on India's market by global analysts, who also lowered their recommendations on Indian equities to "market weight" from "overweight."

The analysts attributed their decision to a lack of positive triggers for the market, along with rising coronavirus cases in the country and concerns over inflation, according to a CNBC India report.

The Nifty and Sensex gained a mere 1% and 2%, respectively, in 2021, as compared to a 13% rise in emerging markets, and a 21% surge in the S&P 500.

The recent market performance has led to worries among investors, who now await the CPI data to get a clearer picture of the economic situation and the central bank's next moves.

All in all, it was a gloomy day for Indian markets, as the domestic economic climate raised concerns about the sustainability of the country's post-pandemic recovery.

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