Sensex crashes 600 points, Nifty slips below 24,200; bank stocks lead sell-off

Markets in the red: Sensex, Nifty take a hit

Indian stock markets witnessed a sharp sell-off on Monday, with the BSE Sensex plunging over 600 points and the Nifty 50 closing below the crucial 24,200 mark. The benchmark indices opened on a weak note and continued to slide through the session, tracking negative global cues and sustained selling in heavyweight banking stocks.

The Sensex ended the day at 79,845, down 612 points, while the Nifty settled at 24,185, falling 178 points. The broader market also felt the heat, with midcap and smallcap indices declining over one percent each.

Bank stocks under pressure: HDFC, Axis lead the fall

Banking stocks were the biggest drag on the indices. HDFC Bank, the country's largest private sector lender by market capitalisation, saw its shares drop nearly three percent. Axis Bank followed closely, shedding over two and a half percent. Traders attributed the selling to profit-booking after recent gains and concerns over rising credit costs in the sector.

Other major losers included ICICI Bank and Kotak Mahindra Bank, which fell between one and two percent. The Nifty Bank index itself declined over 1.8 percent, adding to the overall weakness in the market.

Global cues and sectoral impact

Asian markets traded lower on Monday, with the Shanghai Composite and Hang Seng indices down over one percent each, as renewed concerns over global interest rates weighed on investor sentiment. European markets also opened in the red, adding to the cautious mood.

In India, IT and metal stocks also faced selling pressure. Infosys, TCS, and Tata Steel were among the top losers in the Nifty 50 pack. However, select defensive sectors like FMCG and pharma managed to hold their ground, with Hindustan Unilever and Sun Pharma closing marginally higher.

What analysts say

Market analysts pointed to a combination of factors behind the sharp decline. 'The selling in banking stocks, especially HDFC Bank and Axis Bank, was the primary reason for the fall. Also, global cues remain uncertain, leading to risk aversion among investors,' said a senior equity analyst at a domestic brokerage.

Technical indicators suggest the Nifty has broken below its immediate support level of 24,300. Traders are now watching the 24,000 mark as the next key support zone.

What's next for the markets?

Investors will closely watch the Reserve Bank of India's policy stance and quarterly earnings from major companies this week. A rebound in banking stocks and positive global cues could help the markets recover, but near-term volatility is expected to persist. All eyes are now on whether the Nifty can hold above the 24,000 level in the coming sessions.