The Indian stock market witnessed a continued downturn for the fourth straight session on Monday, driven by fresh geopolitical tensions in the Middle East. The benchmark BSE Sensex declined by 508.40 points, or 0.68 per cent, closing at 74,267.34. During the trading session, the index fluctuated within a wide range, touching an intraday high of 75,367.93 and a low of 74,203.68, resulting in a volatile swing of 1,164.25 points.
Broader Market Impact
The broader Nifty 50 index also mirrored the negative sentiment, ending lower for the fourth consecutive day. Market participants attributed the sell-off to escalating tensions in the Middle East, which have raised concerns about global oil supply disruptions and economic stability. The heightened geopolitical risks prompted investors to adopt a cautious stance, leading to profit booking in recent gainers.
Sectoral Performance
Most sectoral indices ended in the red, with banking, auto, and metal stocks bearing the brunt of the selling pressure. The BSE Midcap and Smallcap indices also declined, reflecting broad-based weakness across the market. However, select defensive sectors such as IT and pharmaceuticals managed to weather the storm, providing some support to the benchmarks.
Global Cues Weigh
Asian markets traded mixed on Monday, while European indices opened lower as investors monitored the Middle East developments. The rise in crude oil prices added to inflationary fears, further dampening risk appetite. Analysts suggest that the market may remain volatile in the near term until clarity emerges on the geopolitical front.
Outlook
Market experts advise investors to stay cautious and focus on quality stocks with strong fundamentals. The ongoing earnings season and domestic macroeconomic data will also be closely watched for cues. The rupee weakened against the US dollar, adding to the headwinds for foreign portfolio inflows.
