New Delhi: Indian equity benchmark indices ended sharply lower on Monday, snapping their two-session winning streak as heavy selling in information technology and private banking stocks, coupled with weak global cues, dampened investor sentiment.
The BSE Sensex declined 876.37 points, or 1.17%, to settle at 73,852, while the NSE Nifty 50 dropped 257.20 points, or 1.11%, to close at 22,888.95.
The broader markets also witnessed significant selling pressure, with the Nifty Midcap 100 and Nifty Smallcap 100 indices falling 1.09% and 1.01%, respectively, reflecting weakness across market segments.
Among sectoral indices, the Nifty Private Bank index fell 1.85%, followed by the Nifty FMCG index, which declined 1.44%, and the Nifty IT index, which shed 1.28%. In contrast, the Nifty PSU Bank index bucked the broader trend, rising 2.4%.
Within the Sensex constituents, Axis Bank, UltraTech Cement, Infosys, Bajaj Finance and Trent were among the major laggards. State Bank of India (SBI) and Adani Ports emerged as the leading gainers, advancing more than 1% each. Larsen & Toubro, IndiGo and Maruti were also among the gainers.
Market participants attributed the decline to cautious sentiment ahead of a busy week of corporate earnings, concerns over private banks’ margin trends and uncertainty in global markets.
Vinod Nair, Head of Research at Geojit Investments, said Indian equities faced renewed selling pressure as weak global cues and losses in private banking and IT stocks weighed on sentiment. He noted that public sector banks outperformed amid expectations of relatively resilient margins and asset quality.
Crude oil prices eased after the United States waived key sanctions linked to Russia, raising expectations of increased Russian fuel supplies to global markets. However, geopolitical tensions continued to influence the outlook.
From a technical perspective, analysts flagged the Nifty’s fall below the psychologically important 23,000 level as a sign of continued weakness.
Vatsal Bhuva, Technical Analyst at LKP Securities, identified immediate support for the index in the 22,800-22,820 range, near its daily 20-day simple moving average. A further break below 22,650-22,700 could intensify selling pressure, while the 23,000-23,186 range is expected to act as resistance.
Investors are likely to remain cautious as earnings announcements and global developments shape market direction in the coming sessions.
