Goldman Sachs' proprietary Risk Appetite Index slipped sharply, marking its weakest reading since March and suggesting a surge in risk aversion across markets.
Analysts point to a confluence of factors—global geopolitical jitters, sluggish economic data, and tightening monetary policy—as key drivers behind the index's slide.
In India, the Nifty and Sensex slipped modestly, with technology and financial sectors pulling the broader market lower.
Traders are now keenly observing the upcoming earnings calendar, hoping a strong corporate performance could tide over the current risk‑averse mood.
Looking ahead, market participants will gauge the impact of the RBI's policy outlook and corporate results on the risk appetite trajectory.