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Sensex, Nifty Decline On US Fiscal Deficit Concerns
(RTTNews) - Indian shares fell sharply on Thursday as a deteriorating U.S. fiscal outlook and poor response to the 20-year bond auction led to a spike in bond yields.
U.S. President Donald Trump's One Big Beautiful Bill Act, which will transform taxes and other federal policies, is amplifying debt and deficit concerns and pushing 30-year Treasury yields to their highest level in 18 months.
Critics says the mega-bill pairing tax relief with spending cuts would lead to an increase in the U.S. debt and further slow U.S. economic growth.
Investors also awaited greater clarity on tariff negotiations between the U.S. and other major economies, including India.
Markets ended off their day's lows as survey data from S&P Global showed India's private sector activity expanded at the quickest pace in just over a year in April, spurred by strong foreign and domestic demand.
The benchmark S&P/BSE Sensex fell more than 1,000 points in intraday trading before recovering some ground to end the session down 644.64 points, or 0.79 percent, at 80,951.99.
The broader NSE Nifty index ended down 203.75 points, or 0.82 percent, at 24,609.70, mirroring weak cues from global markets.
Second-line stocks outperformed in an otherwise weak market, with the BSE small-cap index closing up 0.2 percent.
The market breadth was weak on the BSE, with 2,154 shares declining while 1,767 shares advanced and 165 shares closed unchanged.
Bajaj FinServ, ITC, Tech Mahindra and Mahindra & Mahindra all fell around 2 percent while IndusInd Bank surged 1.7 percent after declaring its Q4 results.
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