Indian equity markets came under heavy selling pressure on Monday, with the Sensex falling around 1,000 points and the Nifty declining 1.23% as private-sector banks led the sell-off. Higher crude oil prices, weak global cues and pressure in heavyweight stocks added to the decline.
The Nifty 50 fell 284.05 points, or 1.23%, to 22,862.10. The index opened at 23,150.85, touched a high of 23,175.25 and slipped to an intraday low of 22,845. The Sensex fell around 1,000 points, or about 1.34%, to 73,729.03.
Higher crude oil prices remained a key concern for investors. Elevated oil prices are negative for India because the country depends heavily on imports to meet its crude requirements. Sustained higher prices can increase the import bill and put pressure on inflation, the rupee and corporate margins.
Global cues also remained weak, adding to the risk-off mood in domestic equities. Investors are also assessing September-quarter earnings from major companies, with disappointing results from some private-sector lenders weighing on sentiment.
Eicher Motors, JSW Steel buck trend
Among Nifty 50 stocks, Eicher Motors, JSW Steel, ONGC, Larsen & Toubro and Maruti Suzuki were among the stocks trading higher during the session, rising up to 2.50% each. Meanwhile, Trent fell 2.88%, Infosys declined 2.82%, Tata Motors Passenger Vehicles fell 2.70% and UltraTech Cement dropped 2.56%.
The Nifty Private Bank index fell 1.86%, making it the worst-performing major sectoral index in today’s trade.. The Nifty Financial Services 25/50 index declined 1.43%, while the Nifty Financial Services ex-Bank index fell 1.20%. Amongst its stocks, Axis Bank was among the biggest drags on the Nifty, falling 4.22% to ₹1,235.60. HDFC Bank declined 2.50% to ₹710.60, while Bajaj Finance fell 2.54% to ₹957.20.
The pressure on private lenders followed their September-quarter results, with investors focusing on margins, provisions and the outlook for earnings. Axis Bank's shares fell sharply after its quarterly profit came in slightly below analysts' expectations, while HDFC Bank also faced pressure.
Public-sector banks, however, bucked the broader market trend. The Nifty PSU Bank index gained 2.21%. Punjab National Bank was among the strongest gainers in the broader market, rising more than 5% in Monday's trade. Other PSU lenders, including Union Bank of India, Canara Bank and Bank of Baroda, were also among the gainers.
The Nifty IT index fell 1.52%, while the Nifty Chemicals index declined 1.30% and the Nifty FMCG index dropped 1.28%.
Other sectoral indices also remained under pressure. Nifty Consumer Durables declined 0.89%, Realty fell 0.76%, Healthcare dropped 0.65%, Auto declined 0.53% and Pharma fell 0.47%. Nifty Metal was down 0.40%.