The Indian stock market encountered sharp selling pressure on Monday, closing significantly lower as global weakness and domestic concerns triggered widespread declines across indices.
The Sensex fell 609 points to end at 85,102.69, while the Nifty 50 dropped 225.90 points to finish at 25,960.55, slipping below the psychological 26,000 mark. This represents a decline of 0.86% on the benchmark indices.
What Triggered the Market Fall?
Analysts attributed the decline to a combination of factors:
1. Weak Global Market Sentiment
- European markets were trading deep in the red throughout the day.
- US futures remained muted — Dow futures dipped while Nasdaq futures stayed slightly positive.
- Global risk appetite weakened as investors turned cautious amid economic uncertainty.
2. Crude Oil Prices Fell Sharply
Crude oil slipped below $64 per barrel, indicating global demand concerns. Lower crude prices often reflect economic slowdown worries, impacting investor sentiment worldwide.
3. Rupee Weakening
The rupee weakened by 19 paise, adding pressure on domestic equities, particularly import-heavy sectors.
4. Derivatives Data Signaled Bearish Positioning
Traders pointed to:
- Aggressive call writing,
- Declining long positions,
These derivative indicators suggested expectations of further downside, contributing to the intraday sell-off.
5. Broader Market Under Pressure
Market breadth was decisively weak:
- Nifty Smallcap 50 plunged 2.70%
- Nifty Next 50 fell 2.05%
Midcap and smallcap stocks were hit harder than large caps, reflecting risk-off sentiment.
📉 Sector Snapshot: Most Indices in Red
Almost every major sectoral index declined:
- Nifty Realty: -3.53% (biggest loser)
- Nifty PSU Bank: -2.81%
- Nifty Media: -2.73%
- Auto, Metal, FMCG, Pharma: Saw broad-based selling
One exception was Nifty IT, which fell only 0.29%, showing relative resilience due to strength in select stocks.
📈 Top Gainers
Despite the fall, a few large-cap names held firm:
- Tech Mahindra: +1.32% (Top Nifty performer)
- TCS and HCL Tech saw marginal declines compared to the market-wide fall.
📉 Top Losers
Major index constituents suffered heavy losses:
- BEL: -4.88% (biggest Nifty loser)
- Trent, Tata Steel, Bajaj Finance, Adani Ports, SBI, Power Grid, Axis Bank, M&M all fell between 1.5% – 2.5%
Selling was widespread across:
- Banks
- Autos
- Capital goods
- Consumer-focused stocks
Originally published on 24×7-news.com.
