Indian equity markets tumbled sharply during early trading hours on Monday, with the benchmark BSE Sensex shedding more than 500 points within minutes of the opening bell. The National Stock Exchange Nifty index mirrored the downward trajectory, sliding below key psychological support levels as persistent geopolitical turmoil in West Asia and cautious positioning ahead of the upcoming U.S. Federal Reserve monetary policy meeting weighed heavily on investor sentiment.
Heavyweight IT, energy, and private banking equities bore the brunt of the initial sell-off, prompting broad-based declines across sectoral gauges. Foreign institutional investors continued their recent streak of net capital withdrawals, influenced by elevated U.S. Treasury yields and a strengthening dollar index. Market participants exercised heightened restraint, choosing to pare leveraged positions in anticipation of interest rate guidance and macroeconomic projections from central bank policymakers.
Sectoral indices on the Bombay Stock Exchange painted a subdued picture, with the mid-cap and small-cap counters recording noticeable losses alongside frontline blue-chip shares. Asian peers also demonstrated mixed-to-negative trading patterns across Tokyo, Hong Kong, and Seoul, reflecting coordinated risk aversion across emerging market assets amid ongoing global trade uncertainties and commodity price fluctuations.
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Sources:
https://www.thehindu.com/business/markets/stock-markets-decline-in-early-trade-sensex-drops-over-500-points/article71625671.ece