Mumbai, Maharashtra: Indian stock markets witnessed a sharp downturn on Monday, with both the Sensex and Nifty closing significantly lower.
The decline was primarily driven by a slump in private bank stocks, disappointing corporate earnings, and the continuous surge in global crude oil prices, which neared USD 109 per barrel. This confluence of factors dampened investor sentiment across the board.
The Nifty 50 index fell by 257.20 points (1.11%) to settle at 22,888.95, while the BSE Sensex plummeted 876.37 points (1.17%), closing at 73,852.90. Selling pressure was pervasive, with nearly all sectoral indices on the National Stock Exchange ending in the red. The Nifty PSU Bank index emerged as the sole exception, posting a gain of 2.41%, indicating a shift in investor preference.
Among the top losers in the Nifty 50 were Axis Bank, which dropped over 4%, alongside TMPV, Infosys, and UltraTech Cement. Conversely, SBI, JSW Steel, Eicher Motors, and Adani Ports managed to buck the trend and ended as top gainers. Vikram Kasat of PL Capital attributed the widespread profit-booking to weakness in private banks, earnings that fell short of expectations, and a cautious global market outlook. He suggested that market volatility is likely to persist, with investors closely monitoring corporate earnings, oil prices, and currency stability.
The rupee, despite firming for a seventh consecutive session against the dollar, faces increasing pressure as Brent crude approaches USD 110. Rajeev Sharan of Brickwork Ratings highlighted the RBI’s significant intervention to stabilize the rupee, noting a substantial draw-down in foreign exchange reserves. This underscores the challenge of maintaining stability amidst rising import costs and global economic uncertainties, ultimately impacting the common person’s cost of living.