Sensex Falls 443 Points, Nifty Slips Below 24,250; HDFC Bank Drops 5%
- Sensex closed 443 points lower, Nifty settled below 24,250.
- HDFC Bank was the top drag on the indices, falling nearly 5%.
- Broader market sentiment remained weak amid selling pressure in banking and financial stocks.
Indian stock markets ended sharply lower on Monday, extending losses from the previous session. The BSE Sensex tumbled 443 points, while the NSE Nifty slipped below the key 24,250 mark at the close.
Investors saw their portfolios take a hit as selling pressure intensified in the afternoon trade. The benchmark indices gave up early gains and never recovered.
Banking stocks lead the decline
The biggest drag on the indices came from HDFC Bank, which crashed nearly 5% in Monday's session. The private sector lender was the worst performer among the Nifty 50 constituents.
Other banking heavyweights also traded under pressure. ICICI Bank and Kotak Mahindra Bank ended in the red, adding to the overall weakness in the financial sector.
Broader markets follow suit
The broader market indices also witnessed a sell-off. The BSE Midcap index fell over 1%, while the Smallcap index shed roughly 0.8% in value.
Analysts pointed to a combination of global cues and profit-booking at higher levels as reasons for the downturn. Foreign portfolio investors have been net sellers in recent sessions, adding to domestic jitters.
Sectoral performance mixed
Despite the overall weakness, a few sectors managed to stay afloat. IT stocks bucked the trend, with Infosys and TCS trading in positive territory. Oil and gas stocks also offered some support to the indices.
However, banking, auto, and realty stocks were the main laggards. The Nifty Bank index fell over 2%, reflecting the stress in financial names.
Market breadth was negative. On the BSE, roughly 1,800 stocks declined against about 1,400 advances.
What's behind the selling pressure
Global cues were not supportive. Asian markets traded mixed, while European indices opened lower. Uncertainty over US interest rate trajectory continued to weigh on investor sentiment.
On the domestic front, concerns over earnings growth and valuations kept traders cautious. The Nifty has been oscillating in a narrow range over the past few sessions.
Technical analysts noted that the index has immediate support at the 24,100 level. A breach below that could trigger further weakness in the coming days.
Meanwhile, traders are now looking ahead to the next batch of corporate earnings. Key results from index heavyweights are scheduled later this week, which could determine the near-term direction for the markets.