Indian benchmark indices Sensex and Nifty 50 experienced a sharp decline at Monday's opening, with Sensex crashing 1000+ points to trade near 73,318.94 and Nifty 50 opening sharply lower at 23,070, down 1.26%. However, as per NDTV Profit, Nifty 50 has outperformed almost all Asian peers and appears relatively unscathed from weak global cues that were threatening to destabilise markets. Heading into Monday's trade, it was an anxious time for Dalal Street, following Friday's negative reaction to overwhelmingly positive jobs data in US markets that sparked fears that a rate cut may not be coming anymore. The market rout wiped out over ₹5 lakh crore from the combined market value of BSE-listed firms, reducing overall market capitalisation to ₹456 lakh crore. India VIX, which measures volatility in markets, surged nearly 12% to 17.66, indicating heightened investor anxiety. As per The Times of India, selling was widespread across the market with every stock in the Sensex basket trading in negative territory, while the Nifty Midcap 100 and Nifty Smallcap 100 both lost more than 1%, reflecting a broad risk-off mood among investors.
The global market selloff was primarily driven by a sharp decline in South Korea's KOSPI index, which tumbled more than 9% in early trade, triggering a market-wide circuit breaker. As reported by ET Now, the index dropped as much as 8.8% in early trading, prompting the Korea Exchange to impose a 20-minute halt under a Level 1 circuit breaker, the second such suspension this year. The rout was sparked by heavy losses in US chip stocks after underwhelming forecasts from Broadcom dragged the Philadelphia Semiconductor Index down more than 10%, its steepest fall since March 2020. South Korea's major chipmakers, including Samsung Electronics and SK Hynix, led the declines, reflecting their significant exposure to global tech demand. Japan's Nikkei also fell over 4%, while Hong Kong's Hang Seng and China's Shanghai Composite each declined more than 1%. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that the Nasdaq's 4.18% decline on Friday has unsettled global sentiment, triggering sharp selloffs in technology-heavy markets such as South Korea and Taiwan. The benchmark index has now retreated roughly 14% from the record levels it touched only last week. However, as NDTV Profit reports, Asian markets staged a sharp recovery from their morning lows, with South Korea's market recovering significantly, while Japan and Taiwan have already moved back into positive territory. Harshal Dasani, Business Head at InvAsset PMS, explains that panic selling eased across the region, risk appetite improved and helped stabilise sentiment in domestic markets.
The latest market selloff resulted in 64 stocks hitting their 52-week lows on NSE, including several prominent names that faced significant pressure. According to Upstox Securities, Reliance Industries, TCS, Swiggy, Wipro and other major stocks were among those that touched their 52-week lows during Monday's trading session. The Nifty IT sector faced immense pressure, trading with losses of more than 1.6% amid weak global cues, including the sharp 4% fall in the Nasdaq Composite on Friday. According to ET Now, all sectoral indices on NSE traded in the red, with Nifty Auto, Nifty IT, Nifty Consumer Durables, Nifty Realty, Nifty Private Bank, Nifty PSU Bank, Nifty Metal and several others dropping over 1% each. Heavyweight laggards included Wipro, M&M, IndiGo, Hindalco, and Tata Steel, which led losses across sectors. Nifty Bank index slipped over 1% at the open to 53,853, while Nifty Smallcap index also declined around 1% to 17,900. Market breadth remained decisively negative, with just 8 stocks advancing against 42 declines, highlighting the intensity of the selloff. Around 2,073 stocks declined on NSE, while 492 advanced and 109 remained unchanged in Friday's session.
Investor sentiment was further shaken by escalating tensions in the Middle East after reports that Iran had launched missiles at Israel, adding to concerns over global growth, inflation risks, and potential volatility in energy markets. As reported by ET Now, Iranian officials also warned that any retaliation would be met with a 'strong' response, raising fears of a wider regional conflict. The U.S. Embassy in Israel issued security alerts, instructing government personnel to shelter in place and prepare for possible relocation. Following the escalation, Iran closed parts of its western airspace. Tehran described the attacks as defensive in nature, stating they were aimed at military positions in response to what it called prior violations. Fresh escalation in West Asia intensified further as military activity between Israel and Iran continued, with Israel reportedly targeting military installations in western and central Iran after Tehran launched multiple missiles towards Israeli locations on Sunday. Local media reported explosions in Tehran, Tabriz and Isfahan, highlighting the fragile nature of the current ceasefire situation and fuelling concerns that the conflict could widen further. The risk-off mood intensified after US President Donald Trump signalled a more aggressive stance towards Iran, triggering fresh concerns over a broader conflict in West Asia, as noted by Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth.
Indian equities ended lower amid weak global cues, as investors turned cautious ahead of a key US inflation print likely to influence the Fed's policy trajectory. According to The Economic Times, early gains were reversed due to profit booking, while subdued oil prices, despite fresh geopolitical developments, offered limited support. FMCG stocks outperformed on expectations of price hikes, and private banks advanced following the RBI's easing of FCNR(B) and ECB norms, whereas metals lagged due to softer commodity prices. Vinod Nair, Head of Research of Geojit Investments, noted that all these indices have appreciated significantly on the back of AI, DRAM and semiconductor wave, to a point where it is being feared that the bubble might already be too big. Vatsal Bhuva from LKP Securities observed that Nifty witnessed a recovery from lower levels after forming an inverted hammer candlestick on the daily chart, but faced strong selling pressure near the 23,400–23,450 zone. The expected trading range for Nifty is 23,000–23,550, with 23,200 acting as immediate support, 23,000–23,100 as positional support, and 23,450–23,550 as the key resistance zone. Out of 3,378 stocks that traded on NSE on Wednesday, 1,038 stocks witnessed advances, 2,258 saw declines while 82 stocks remained unchanged, with buying interest visible around the 23,000–23,100 zone. Crude oil prices have edged higher in response to the escalation and are currently trading in the $92–93 per barrel range, while Foreign Institutional Investors (FIIs) continue to remain net sellers, with persistent outflows acting as a significant headwind for the Indian market.
