Indian equity markets ended sharply lower on Monday, extending losses for a second straight session, as global and domestic headwinds triggered a broad-based sell-off across sectors. The Sensex plunged 1,636 points to close at 71,948, while the Nifty50 slipped 488 points to settle at 22,331, breaching the 22,400 mark.
Investor wealth took a significant hit, with nearly ₹10 lakh crore wiped out from BSE-listed companies. Market breadth remained decisively negative, with declines outpacing advances by a ratio of 1:6, reflecting widespread selling pressure.
The sell-off was led by banking and financial stocks, with heavyweights such as HDFC Bank, ICICI Bank and SBI falling up to 5%. The decline followed the Reserve Bank of India’s tightening of forex exposure norms, which is expected to trigger unwinding of arbitrage positions and add near-term volatility.
Global cues further dampened sentiment. Brent crude surged over 3% to above $115 per barrel, capping a sharp monthly rally amid escalating tensions in West Asia. The ongoing US-Israel conflict with Iran, now entering its fifth week, has heightened concerns over supply disruptions and shipping risks around key routes.
The rupee weakened past the 95-per-dollar mark for the first time, hitting a record low of 95.22, adding to investor nervousness. Bond yields also climbed, with the 10-year benchmark crossing 7%, signalling tightening financial conditions.
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Foreign institutional investors continued to remain sellers, offloading ₹4,367 crore in the previous session, extending persistent outflows through March amid global risk aversion.
Analysts flagged the deteriorating macro outlook. VK Vijayakumar of Geojit Investments said, “The Goldilocks macro scenario which India had before the war has almost disappeared,” pointing to risks of slower growth, higher inflation and weaker earnings.
Sectorally, aviation, oil marketing companies and consumption-linked sectors remained under pressure due to rising input costs. However, select pockets such as sugar and aluminium stocks bucked the trend, tracking gains in commodity prices.
With volatility elevated and the VIX rising sharply, experts advise a cautious approach, recommending selective accumulation of fundamentally strong stocks rather than chasing short-term rebounds.
