Indian equity benchmarks witnessed a sharp sell-off on Monday, with the BSE Sensex tumbling over 900 points and the NSE Nifty closing below the 23,900 mark, as heavy selling pressure in IT and metal stocks weighed on the markets.
Market Performance
The 30-share BSE Sensex plummeted 906.34 points, or 1.14%, to settle at 78,541.32. The broader NSE Nifty dropped 268.15 points, or 1.11%, to end at 23,883.45. Both indices recorded their biggest single-day fall in over a month.
Among the Sensex constituents, the top losers included Tata Steel, Infosys, TCS, HCL Technologies, and Tech Mahindra. On the other hand, Hindustan Unilever, Nestle India, and Maruti Suzuki managed to close in the green, providing some support.
Sectoral Impact
The IT sector was the worst hit, with the Nifty IT index plunging over 3%. Metal stocks also faced heavy selling, with the Nifty Metal index declining 2.5%. Banking stocks too came under pressure, with the Nifty Bank index falling 0.8%.
According to market analysts, the sell-off was triggered by weak global cues, particularly from the US markets, where concerns over rising interest rates and geopolitical tensions dampened investor sentiment. Additionally, profit-booking after recent gains added to the downside.
Expert Views
"The market witnessed a broad-based sell-off today, led by IT and metal stocks. Global cues were negative, and investors chose to book profits after the recent rally," said Vinod Nair, Head of Research at Geojit Financial Services.
"The Nifty has broken below the 24,000 level, which is a key support. If it fails to hold above 23,800, we could see further correction," added Nair.
Broader Market
The broader market also ended in the red, with the BSE Midcap index falling 0.9% and the BSE Smallcap index declining 0.7%. The overall market breadth was negative, with 1,820 stocks declining and 1,480 advancing on the BSE.
Foreign institutional investors (FIIs) were net sellers, offloading shares worth Rs 1,200 crore, while domestic institutional investors (DIIs) bought shares worth Rs 800 crore, according to provisional data.
Outlook
Market participants will now watch for further cues from global markets, especially the US Federal Reserve's monetary policy stance. Any hawkish commentary could lead to further volatility in the near term.
The rupee also weakened against the US dollar, closing at 83.15, down 10 paise from the previous close.
