Benchmark stock market indices closed significantly lower on Monday due to continuous selling pressure from foreign institutional investors (FIIs) and increased volatility, impacting investor confidence on Dalal Street. The S&P BSE Sensex dropped by 609.68 points to end at 85,102.69, while the NSE Nifty50 declined by 225.90 points to settle at 25,960.55. Despite initial recovery efforts, both indices faced heightened selling activity in the later part of the trading session.
The overall market displayed weakness, with various broader indices finishing in the negative territory. The mid-cap and small-cap segments also experienced downturns, reflecting a cautious approach beyond leading stocks. Key sectors such as banking, financials, IT, and metals witnessed substantial selling pressure, exerting significant downward pressure on the benchmarks. Certain heavyweight stocks saw consistent profit-taking, contributing to the overall decline despite some support in defensive stock categories.
Market participants were concerned about the escalating volatility and the persistent risk-averse stance of foreign investors. The session saw a notable surge in volatility, highlighting increasing apprehension ahead of crucial global developments and local economic triggers. Traders remained cautious about the continuous outflows by FIIs, which have been a major concern for the Indian stock market recently.
Amidst the uncertainty, market sentiment remained delicate, with investors closely monitoring global bond yields, crude oil prices, and currency fluctuations for market direction. Analysts suggest a cautious near-term outlook for equities as volatility persists and foreign investments continue to be negative. Stock-specific activities are anticipated to drive trading decisions in the foreseeable future.