Indian Stock Market Falls: Indices Hit 7-Month Lows: Indian stock market indices fell sharply today due to several negative factors. The Nifty index closed at the lowest levels in over seven months today. Weak global cues, poor Q3 earnings from some companies, uncertainty about U.S. trade policies, and ongoing selling pressure from foreign investors combined hit the market sentiments on Monday.
The key benchmarks extended losses as the session progressed. Nifty 50 index fell below 22,850, with IT and metal stocks declining the most. Midcap and small-cap stocks were hit even harder. Market volatility spiked, with India’s VIX rising over 8%, showing growing investor worry.
Indian Stock Market Indices Hit 7-Months Low
The BSE Sensex declined 824.29 points or 1.08% to 75366.17, while the Nifty index plunged 263.05 points or 1.14% to 22829.15 level. The broader markets underperformed the benchmarks, as the Nifty midcap index dropped 2.75% and the Nifty Smallcap index fell 3.84% on Monday.
The index-heavy stocks Infosys and TCS declined more than 2% while Reliance and HDFC Bank were down more than 1% today. The market breadth was weak, as on the NSE, 243 shares advanced, while 2203 shares declined at the close.
Global Stock Market News
On the global front, the Asian stock market indices mostly closed in the red on Monday. While China reported an 11% rise in industrial profits for December, concerns grew as the country’s factory activity shrank. The official Purchasing Managers’ Index (PMI) for January fell to 49.1, signaling a slowdown.
Trading in Asia is likely to remain volatile this week as many markets prepare to close mid-week for the Lunar New Year celebrations.
Nasdaq futures witnessed a sell-off of 4.2% after Chinese startup DeepSeek launched a free, open-source AI model. The IT stocks dragged as the tool is seen as a rival to OpenAI’s ChatGPT, raising fears of increased competition in the tech industry.
Conclusion
The Indian stock market faced a tough day today, with key indices hitting multi-month lows due to a mix of global and domestic challenges. Weak earnings, global uncertainties, and persistent selling by foreign investors weighed heavily on market sentiment. While the IT and metal sectors bore the brunt of the decline, midcap and small-cap stocks underperformed even further, highlighting the broad-based sell-off.
Going ahead, the upcoming Union Budget, the U.S. Federal Reserve’s interest rate decision, and ongoing corporate earnings reports will play a critical role in shaping market direction. Investors should remain cautious as markets navigate through this period of heightened volatility, both domestically and globally.
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