Mumbai: The stock market plunged downwards on Monday, with both Sensex and Nifty taking a significant hit as investor sentiment turned bleak amidst global and domestic challenges. The Sensex fell by 824.29 points, closing at 75,366.17, while the Nifty dropped 263.05 points to close at 22,829.15. The breadth of the market was overwhelmingly negative, with only 8 Nifty companies advancing, 42 declining, and one remaining unchanged. Among the few gainers, Britannia, ICICI Bank, M&M, Hindustan Unilever, and SBI stood out. On the other hand, heavy losses were seen in stocks like HCL Tech, Tech Mahindra, Wipro, Hindalco, and Shriram Finance, which emerged as the top losers of the day. Commenting on the market's performance, Vinod Nair, Head of Research at Geojit Financial Services, attributed the sell-off to "broad-based selling across sectors," which, he said, was further worsened by "tepid earnings and weak sentiments across the globe." "Broad-based selling across sectors plummeted the Indian market amidst tepid earnings and weak sentiments across the globe. Mid and small-caps remained in their downward trajectory over expensive valuations. FIIs are on a selling spree due to moderation in economic growth and INR depreciation," he said. "The weak sentiments were further exacerbated as the US trade confrontation continued, like with Colombia this time. Heightened volatility is here to stay this week ahead of the risk of the upcoming events like the FOMC meeting, expiry week, and Union budget," he added. VLA Ambala, SEBI-registered research analyst and co-founder of Stock Market Today, noted that Indian rupee's depreciation was a key factor contributing to the market's woes. "The Indian rupee has depreciated a lot in the last few months due to various factors, including a widening trade deficit, higher crude oil prices, and a surge in the dollar index after the Federal Reserve signaled reduced rate cuts in 2025," she said. "The index has fallen by nearly 13 percent from its highest point and continues to maintain a bearish outlook. On the other hand, the INR has depreciated by 2.97 percent against the USD over the past 3 months. In response, the RBI has intervened in the spot market, spending USD 77 billion from its foreign exchange reserves to prevent a sharper fall in the rupee," she added. With global uncertainties and domestic pressures weighing heavily on investor confidence, the Indian market faces a challenging week ahead, with volatility likely to remain high as traders await upcoming economic events.
