MUMBAI, Maharashtra — Indian equity markets tumbled on Monday as broad-based selling and caution ahead of this week’s U.S. Federal Reserve policy announcement pressured key indices. Persistent foreign investor outflows and continued weakness in the rupee further dampened sentiment.
The Sensex closed at 85,102.69, down 609.68 points, or 0.71 percent. The 30-share index opened lower at 85,624.84 and extended losses through the session, falling to an intraday low of 84,875.59. The Nifty ended at 25,960.55, down 225.90 points, or 0.86 percent.
“The market experienced a broad-based decline, slipping below the 26,000 mark as investors turned cautious ahead of this week’s U.S. Fed policy decision,” said Vinod Nair, Head of Research at Geojit Financial Services. “Despite robust domestic growth figures and the RBI’s recent rate cut, short-term sentiment remains overshadowed by global monetary policy concerns, persistent FII outflows, and currency depreciation.”
Nair noted that volatility was also fueled by a jump in Japanese bond yields to multi-year highs, raising fears of an unwinding of the yen carry trade.
Most major Sensex stocks ended in the red, including Trent, Tata Steel, Bajaj Finance, Bajaj FinServ, PowerGrid, Asian Paints, Tata Motors PV, Titan, NTPC, Kotak Bank, L&T, Bharti Airtel, Mahindra & Mahindra, Axis Bank, Hindustan Unilever, Sun Pharma, Ultratech Cement, ITC, Maruti Suzuki, and Infosys. Tech Mahindra was the lone gainer.
Sectoral indices reflected the broad sell-off. Nifty Financial Services fell 0.70 percent, Nifty Bank dropped 0.90 percent, Nifty Auto declined 1.23 percent, Nifty FMCG slipped 1.20 percent, and Nifty IT eased 0.29 percent.
The broader markets saw deeper cuts. Nifty Smallcap 100 fell 2.61 percent, Nifty Midcap 100 dropped 1.83 percent, and Nifty 100 declined 1.05 percent.
The rupee weakened further, falling 13 paise to settle at 90.06 against the U.S. dollar, pressured by ongoing FII selling, soft equity markets, and uncertainty surrounding the India–U.S. trade deal.
With the Federal Reserve’s policy outcome and India’s CPI data due later this week, analysts expect elevated volatility to persist. The rupee is likely to trade in the 89.75–90.30 range in the near term. (Source: IANS)
