Indian equity markets witnessed a sharp sell-off on Monday morning, with benchmark indices plunging into deep red territory as weak investor sentiment, driven by foreign fund outflows and simmering geopolitical tensions, took a heavy toll.
Market Plunge and Partial Recovery
The trading session began on a highly negative note. The BSE Sensex plummeted over 700 points, while the NSE Nifty50 index breached the crucial 25,000 level to the downside. However, the indices staged a significant recovery from the day's lows. By 12:30 PM, the Nifty50 was trading at 25,668, down a marginal 14 points or 0.06%. The Sensex, meanwhile, was down 88 points or 0.11% at 83,487.
FII Selling and Domestic Support
The market weakness was largely attributed to sustained selling by foreign institutional investors (FIIs). Exchange data revealed that FIIs sold Indian equities worth Rs 3,769.31 crore on the previous trading day, Friday. This selling pressure was partially offset by domestic institutional investors (DIIs), who provided support with net purchases worth Rs 5,595.84 crore.
Top Performers and Laggards
At 12:30 PM, the Nifty50 was led by gains in sectors like metals and PSUs. Coal India surged 3.02%, followed by Asian Paints (1.89%) and SBI Life (1.36%). On the losing side, Eicher Motors fell 1.53%, with Bajaj Finance and Adani Ports also declining.
On the Sensex, the top gainers included Asian Paints (up 1.87%) and IndusInd Bank (up 1.67%). The broader BSE index saw sharper declines in specific stocks, with Tejas Networks crashing nearly 11% and Signature Global falling 5.90%.
Geopolitical Concerns Weigh on Sentiment
Market experts pointed to a combination of domestic and global anxieties behind the downturn. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated that the market has turned distinctly weak, weighed down by a series of events. He highlighted that geopolitical developments in Venezuela, the crisis in Iran, and former US President Donald Trump's remarks regarding Greenland are being viewed with concern by investors.
This follows a weak closing on Friday, where the Sensex had already fallen 604.72 points to close at 83,576.24, and the Nifty declined 193.55 points to 25,683.30.
In global markets, Asian indices like South Korea's Kospi, China's SSE Composite, and Hong Kong's Hang Seng offered some relief by trading higher. US markets had also closed in positive territory on Friday. Meanwhile, Brent crude oil prices edged up 0.24% to $63.49 per barrel.
