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Indian equities mirroring weak global cues traded with sharp cuts in Thursday's trade (May 22, 2025). After opening weak, markets extended losses and Nifty fell to day's low of 24,542 levels. So, what's dragging Indian equities and will US markets weakness augur well for India. Here's Zee Business Managing Editor Anil Singhvi's take.
US stock markets sharp fall on May 21, 2025
All the key indices in Wednesday's session saw sharp selling pressure of up to 1.91 per cent on the Dow Jones index. The sharp slippage came following worries over rising US debt and following Moody's downgrade of its investment rating on the US.
And amid such downgrades, while the bond yield escalated, the safe-haven dollar index declined.
Rising bond yield also worsened sentiment, as the 30-year US bond yield jumped to 5 per cent, while the 10-year bond yield traded close to 4.6 per cent levels.
Meanwhile, the dollar index (DXY) saw a drag and last with a cut of 0.04 per cent traded at 99.57.
Anil Singhvi's take
Anil Singhvi mentioned that amid US President Donald Trump's retaliatory tariffs, there is a threat of the government deficit rising immensely. This weakened economic outlook is also weighing on the safe-haven dollar - as its strength is now doubted.
Everyone wants to sell dollars and buy something else, he added.
Also, he noted that there is seen increased trade in assets which get prominence in weakened economy like gold, bitcoin etc.
Will weak US markets help India?
The market expert noted that declining dollar index will benefit economies like India and other emerging nations. And the move shall trigger investments by FIIs. Additionally, some of the US funds will also fund way into emerging markets.
He added that gold will see an increase in investment.
Further, he noted that weakness in the US market will weigh on the sentiment in the short term, nonetheless, it will be only positive in the long term.
English (US) ·