Mumbai: Indian equity markets witnessed a sharp fall on Monday, with both benchmark indices closing significantly lower amid broad-based selling across sectors. The BSE Sensex dropped 1,312.91 points or 1.70 percent to settle at 76,015.28. During the session, the index slipped close to the 75,950 mark.
The NSE Nifty 50 also declined heavily, falling 360.30 points or 1.49 percent to close at 23,815.85. The index remained under pressure throughout the trading session and closed below the important 23,900 level.
Banking And IT Stocks Weigh On Markets
Market experts said selling pressure was mainly seen in banking, financial and information technology stocks. Investors remained cautious amid weak global market trends and uncertainty over economic growth expectations.
Heavyweights from the banking sector dragged the benchmarks lower, while technology stocks also saw profit booking after recent gains. Midcap and smallcap shares also traded weak, reflecting negative market sentiment across the broader market.
Global Cues Affect Investor Mood
Weak global cues also impacted domestic investor confidence. Rising concerns over global economic slowdown, inflation worries and uncertainty in international markets kept traders cautious during the day.
Analysts said investors preferred reducing risky positions ahead of key global developments and upcoming economic data releases. Continuous foreign fund outflows also added pressure on Indian equities.
Volatility Likely To Continue
Market participants expect volatility to remain high in the coming sessions due to global uncertainty and movement in crude oil prices. Experts advised investors to remain selective and focus on fundamentally strong companies during volatile market conditions.
Despite Monday’s sharp correction, analysts believe long-term market fundamentals remain stable, supported by domestic economic growth and strong retail participation.
