BIZ DESK
Domestic equity markets started the week on a subdued note, with benchmark indices witnessing a sharp decline in Monday’s trading session. Investor sentiment remained cautious amid a mix of uninspiring Q1 earnings, sectoral weaknesses, and lingering uncertainties over ongoing India-US trade negotiations.
The BSE Sensex plunged by 572 points, or 0.70%, to close at 80,891, while the broader NSE Nifty-50 index shed 156 points, or 0.63%, to settle at 24,681. Both indices snapped their recent streak of relative stability and reflected the nervousness pervading the market.
Losses were widespread across sectors, with IT, metal, FMCG, and financials witnessing significant selling pressure. Analysts attribute the broader decline to investor disappointment over earnings from a few heavyweight companies, which failed to meet street expectations, alongside weak global cues.
In the broader market, the BSE MidCap index declined by over 0.7%, while the SmallCap index underperformed, tanking by nearly 1.3%. The sharper fall in small-cap stocks highlights growing risk aversion among retail investors, who had previously driven a rally in this segment.
Market participants also remained wary ahead of key global economic data releases and the Federal Reserve’s upcoming policy decision, which may provide hints on future rate moves. At the same time, uncertainty over India-US trade talks has added to the unease, particularly in sectors dependent on export dynamics and foreign investment flows.
On the currency front, the rupee traded weak against the US dollar, adding to concerns for import-heavy sectors like oil & gas and aviation. Foreign Institutional Investors (FIIs) continued to be net sellers, contributing to the downward momentum in the equity space.
Experts suggest the near-term outlook remains volatile, with markets likely to remain range-bound unless positive triggers emerge either from corporate earnings or clarity on the global economic front. Until then, traders may continue to adopt a wait-and-watch approach, especially as geopolitical and economic uncertainties linger.