The S&P BSE Sensex tumbled over 650 points to trade below 76,500 level at the day's low, while the Nifty 50 index declined over 200 points, slipping below the 23,900 mark. According to The Economic Times, this decline wiped out nearly ₹4.57 lakh crore in investor wealth as the market capitalisation of BSE-listed companies fell to around ₹475 lakh crore. The broader market showed mixed performance with the BSE 150 MidCap Index falling 0.42% and the BSE 250 SmallCap Index shedding 0.03%. Market breadth remained negative with 1,428 shares rising and 1,535 shares falling on the BSE, while 170 shares remained unchanged.
The Nifty IT index tumbled 5.30% to 26,558.25, extending its decline for the second consecutive trading session with 8.48% decline in two consecutive sessions. The sector collapse was triggered by global tech stocks selloff that affected major Indian IT companies. Indian IT stocks like Infosys, Wipro, Tata Consultancy Services, HCL Tech fell up to 2.5% in Monday's trading session, as reported by market sources. Major IT stocks experienced significant losses including Infosys (down 7.57%), Tata Consultancy Services (down 5.74%), Mphasis (down 5.23%), HCL Technologies (down 5.34%), LTM (down 4.58%), Persistent Systems (down 4.43%), Tech Mahindra (down 4.4%), Wipro (down 3.54%), Coforge (down 2.82%) and Oracle Financial Services (down 0.54%). The latest round of selling was triggered after Accenture trimmed the upper end of its annual revenue growth guidance, reviving worries about weak discretionary spending by global enterprises.
According to The Economic Times, there were four key factors behind the market decline: 1) Kospi crash - The correction came after South Korea's Kospi index crashed after surging to fresh all-time highs earlier this month and crossing the 9,000 mark for the first time. 2) US Fed rate hike fears - Higher interest rates in the US can potentially lead to foreign outflows from the Indian capital market as higher yields across US treasuries offer attractive returns for foreign investors. 3) IT stocks selloff resume - Accenture's commentary has added to investor concerns that demand recovery may take longer than expected, particularly significant for Indian IT firms which generate a large share of their revenue from North America. 4) Rupee slide - Ponmudi R, CEO of Enrich Money said immediate resistance for the rupee is seen in the 94.70-94.75 range, with a sustained move above this level potentially weakening the currency further towards 94.80-94.85 against the US dollar.
Several companies announced significant developments that drove their stock prices higher despite broader market weakness. Reliance Industries (RIL) rose 0.31% ahead of its 49th Annual General Meeting (AGM) scheduled for June 19, with investors closely tracking updates on the much-anticipated Jio listing, artificial intelligence initiatives and the company's new energy business. Bharat Forge rose 0.48% after its wholly owned defence subsidiary, Kalyani Strategic Systems, entered into a strategic partnership with AM General at the Eurosatory defence exposition. Infosys, TCS, Tata Steel, Tech Mahindra, and Adani Ports were among the biggest losers on the BSE, falling as much as 3.5% in afternoon trade, as reported by The Economic Times. Foreign portfolio investors (FPIs) sold shares worth ₹1,025.20 crore, while domestic institutional investors (DIIs) were net buyers to the tune of ₹3,516.81 crore in the Indian equity market on June 18, 2026, as per provisional data.
The Indian market decline occurred against a backdrop of mixed global cues, with most Asian markets declining even as peace in the Middle East with the reopening of the Strait of Hormuz pulled oil prices lower and eased inflation fears. Mainland China and Hong Kong's stock markets are closed for the Dragon Boat Festival holiday, while Taiwan was also on holiday. The US Dollar Index (DXY) was up 0.07% to 100.92, hovering near a 13-month high after a hawkish turn from the Federal Reserve led markets to price in more than one rate hike this year. MCX Gold futures for 5 August 2026 settlement fell 1.61% to ₹146,875, while Brent crude for August 2026 settlement fell 63 cents or 0.79% to $79.22 a barrel. The rupee edged higher against the dollar, with the partially convertible rupee hovering at 94.2200 compared with its close of 94.4025 during the previous trading session.
