- Sensex declined 307.24 points, or 0.40 per cent, to settle at 76,957.27 on Monday, with 20 of its constituents ending lower.
- Nifty dropped 95.25 points, or 0.39 per cent, to end at 24,080.40.
- Brent crude jumped 3.63% to $91.30 per barrel amid escalating US-Iran tensions, impacting market sentiment.
- The MSCI rebalancing and a new closing price mechanism triggered stock-specific volatility, affecting major stocks like Reliance Industries and HDFC Bank.
- On Friday, Sensex climbed 330.92 points, or 0.43%, to settle at 77,264.51, while Nifty settled 84.80 points, or 0.35%, higher at 24,175.65.
- Foreign Institutional Investors (FIIs) offloaded equities worth ₹5,039.80 crore on Friday, contributing to negative market sentiment.
- Weak trends in global markets and foreign fund outflows have been cited as factors that dented investor sentiment.
The BSE Sensex declined by 307.24 points to 76,957.27, while the NSE Nifty fell 95.25 points to 24,080.40 on Monday, driven by renewed tensions in West Asia and a surge in crude oil prices. Brent crude rose 3.63% to USD 91.30 per barrel, raising concerns over energy-led inflation.1235
Analysts pointed to foreign fund outflows and weak global market trends as significant factors affecting investor sentiment. Vinod Nair, Head of Research at Geojit Investments, stated, "Escalating tensions between the US and Iran have kept investors on edge, as fading prospects of a diplomatic breakthrough pushed crude oil prices and global bond yields higher."
The market's volatility was exacerbated by the recent MSCI index rebalancing, which analysts described as a major event for Indian markets. Ponmudi R, CEO of Enrich Money, noted that this was the first significant stress test for the new system, impacting stocks like Reliance Industries, which saw its weighting lowered and shares fall 0.8%.
Overall, 20 of the 30 Sensex firms ended lower, with major laggards including Adani Ports, ITC, and HDFC Bank. In contrast, Sun Pharma and ICICI Bank were among the few gainers. The market's decline reflects broader concerns over rising borrowing costs and geopolitical risks, with FIIs offloading equities worth ₹5,039.80 crore on Friday.
“Brent crude jumped 3.63% to $91.30 per barrel, while FIIs offloaded ₹5,039.80 crore on Friday. The MSCI rebalancing and new closing price mechanism caused sharp swings in stocks like Reliance Industries and HDFC Bank, with analysts noting less-liquid names face higher price dislocation.”
