The week began on a sour note for Dalal Street, with the Indian equity benchmarks opening deep in the red. The Sensex tumbled 528 points to 73,198 at the opening bell, signaling a bearish start influenced by overnight weakness in global peers.
Nifty50 followed suit, dropping 152 points or 0.68% to 22,245. Heavyweights such as HDFC Bank, Infosys, and Reliance Industries weighed on the indices, with banking and technology sectors posting the steepest falls of over 1%.
What triggered this slide? Escalating geopolitical tensions in the Middle East, combined with a stronger US dollar, have rattled sentiment. Asian bourses like Nikkei and Hang Seng also opened lower, amplifying the negativity.
FIIs have been net sellers for six straight sessions, pulling out ₹15,000 crore this month alone. Domestic funds tried to stem the tide with buying, but it wasn’t enough to reverse the momentum.
‘Emotional selling is dominating, but fundamentals remain intact,’ noted Deepak Shenoy, Founder of Capital Mind. ‘Watch for oversold bounces, especially if crude oil stabilizes.’
Rupee opened weaker at 83.45 per dollar, adding to import-heavy sectors’ woes. Crude prices hovered near $85 a barrel, pressuring energy stocks.
Market breadth was skewed negative, with 2,200 scrips declining against 1,000 advances. Volatility index India VIX jumped 5%, hinting at heightened uncertainty.
Traders are now focused on key levels: Nifty support at 22,200, resistance at 22,500. A relief rally could emerge if European markets stabilize, but for now, caution rules the roost.