Indian equity markets faced renewed selling pressure on Monday, with the benchmark indices sliding toward six-month lows as surging crude oil prices, geopolitical tensions, and weak international market signals weighed on sentiment. The Sensex and Nifty extended their losing run to seven consecutive weeks, with both benchmarks having shed nearly 6 per cent during the prolonged decline. The streak ranks among the longest weekly losing spells recorded by the domestic market.
At about 11:27 am, the BSE Sensex was trading at 72,857.95, down 1,037.79 points or 1.40 per cent. Meanwhile, the Nifty 50 stood at 22,818.45, declining 323.60 points or 1.40 per cent.
Selling was broad-based, with all 16 major sectoral indices trading in negative territory. The Nifty Midcap 100 and Nifty Smallcap 100 also declined 1.43 per cent each, indicating that pressure was not limited to large-cap stocks.
Global cues remained a key concern for domestic equities. Brent crude was trading at $106.58 a barrel, up 2.17 per cent, while gold declined 2.09 per cent to $4,195.30.
Market expert Ajay Bagga said developments in oil prices, the US 10-year Treasury yield and the currency would be among the key factors influencing the market this week.
“With oil on the boil, the rupee under pressure and global bond yields rising, Indian markets are facing multiple challenges. With the month-end expiry of the Nifty and Bank Nifty slated for Tuesday, expect volatility,” Bagga said.
He also noted that domestic institutional money was helping absorb foreign selling pressure. However, a substantial supply of shares from the primary market was restricting the possibility of a wider market recovery.
Nifty Struggles Below Key Technical Level
The Nifty’s early decline reflected broad-based selling across several major sectors. Nifty Private Bank dropped 1.02 per cent, while PSU Bank declined 0.95 per cent. Financial Services fell 0.93 per cent, Metal slipped 0.93 per cent and FMCG declined 0.89 per cent.
Nifty IT was the only sector in positive territory at the time of reporting, although its gain remained marginal at 0.05 per cent.
At the stock level, Dr Reddy’s Laboratories, TCS and SBI Life were among the shares trading higher during the early session.
On the other hand, Hindalco, Max Healthcare and Adani Enterprises featured among the leading decliners at the time of reporting.
The weakness across multiple sectors indicated a cautious start as investors assessed global commodity prices, currency movements and upcoming derivatives expiry.
With the Nifty moving below 23,000, market participants are closely watching the next set of support and resistance levels.
Market analyst Vipin Dixena said, “Below that, I would watch 22,800–22,700. On the upside, 23,300 is the first hurdle, followed by 23,500.”
(With Agency Inputs)