Indian stock markets kicked off the week with a sharp downturn, as the BSE Sensex plunged over 500 points in early trade on Monday. The benchmark index opened at 73,198, down 528 points or 0.72% from its previous close, reflecting investor caution amid global uncertainties.
The NSE Nifty also mirrored the gloom, slipping below 22,300 to trade at 22,245, a decline of 152 points or 0.68%. Broader markets showed similar weakness, with midcap and smallcap indices shedding up to 1%. Sectors like banking, IT, and auto led the losses, dragging the market lower.
Market analysts point to a combination of factors fueling the sell-off. Weak global cues from Asian markets, coupled with rising US Treasury yields, have spooked investors. Additionally, foreign institutional investors (FIIs) continued their selling spree, offloading shares worth ₹2,500 crore last week.
‘Banks and IT stocks are under pressure due to disappointing quarterly updates and global rate hike fears,’ said Vinod Nair, Head of Research at Geojit Financial Services. ‘Domestic retail participation might provide some cushion, but volatility is expected to persist.’
Despite the early rout, some buying emerged in defensive sectors like FMCG and pharma, offering minor relief. Gold prices surged as a safe-haven bet, while the rupee weakened against the dollar.
As trading progresses, all eyes are on upcoming RBI policy signals and US Fed minutes for direction. Investors are bracing for a choppy session, with support levels for Sensex eyed around 72,500. This downturn underscores the market’s vulnerability to external shocks in an election-filled year.