Stock Markets Tumble: Sensex Drops 800 Points, Nifty Falls 1%
Indian stock markets experienced a sharp decline on Monday, with the Sensex plunging 800 points to close at 64,100 and the Nifty falling 1% to settle at 19,250. This downturn was driven by weak global cues, including concerns over prolonged high interest rates, inflationary pressures, and rising geopolitical uncertainties.
Technology and banking stocks led the losses, with major players like Infosys, TCS, HDFC Bank, and ICICI Bank witnessing significant declines. Global factors such as fears of a slowing Chinese economy, potential policy tightening by central banks, and a lackluster performance on Wall Street have amplified investor concerns, resulting in broad-based selling pressure across sectors.
In addition to global cues, domestic factors like subdued quarterly earnings reports and rising crude oil prices have further dampened market sentiment. Crude oil climbed above $80 per barrel, raising concerns about its impact on inflation and the current account deficit.
Midcap and small-cap stocks, which have shown resilience in recent months, also witnessed profit-booking, with both indices declining by 0.8% during the trading session. Foreign institutional investors (FIIs) were net sellers, offloading Indian equities worth ₹2,000 crore, adding to the bearish sentiment.
Market analysts believe that continued caution is warranted as global economic conditions remain uncertain. While domestic fundamentals remain strong, with stable GDP growth and improving industrial output, short-term volatility is expected to persist. Investors are advised to adopt a selective approach, focusing on sectors like energy and pharmaceuticals, which are less sensitive to global headwinds.
As global markets remain volatile, market participants will closely monitor key events, including Federal Reserve minutes, crude oil price movements, and geopolitical developments, which are expected to shape market trends in the coming weeks.
