Sensex ends over 1,100 points lower, Nifty below 23,000; Reliance, SBI among top losers

At the close, the Sensex fell 1,124.02 points, or 1.52%, to 72,771.72. The Nifty 50 dropped 360.25 points, or 1.56%, to end at 22,780.25.

In Short

• Sensex fell 1,124 points, Nifty dropped 360 points on Monday
• All major sectors ended lower with PSU Bank index down 3.24%
• Rising crude prices and US-Iran tensions increased market caution

Indian stock markets had a rough start to the week, with the Sensex and Nifty falling sharply as investors turned cautious amid rising crude oil prices and fresh uncertainty over US-Iran talks.

The Sensex fell 1,124.02 points, or 1.52%, to close at 72,771.72, while the Nifty 50 dropped 360.25 points, or 1.56%, to end at 22,780.25.

The selling was broad-based, with both large-cap and broader market stocks coming under pressure. The Nifty Midcap 50 fell 1.52%, while the Midcap 100 declined 1.63%. The Nifty Smallcap 100 also slipped 1.85%.

ALL MAJOR SECTORS END LOWER

There was little relief across the market, with all major sectoral indices ending in the red.

The Nifty PSU Bank index was the biggest loser, falling 3.24%. Realty declined 2.12%, while Metal, Auto and FMCG indices fell 1.78%, 1.64% and 1.47%, respectively. The Pharma index declined 0.89%.

Financial stocks also faced heavy selling. HDFC Bank fell 2.30%, ICICI Bank declined 1.90% and State Bank of India dropped 2.10%. Reliance Industries also slipped 2.24%.

IT stocks were not spared either. Infosys was the only stock among the major IT names mentioned to end higher, gaining 0.20%. Tech Mahindra fell 0.24%, HCL Technologies declined 0.45% and TCS lost 0.59%.

The Nifty MidSmall Financial Services index fell 0.52%, while the Financial Services Ex-Bank index declined 0.07%.

The India VIX, which tracks expected market volatility, rose 12.17% to 13.64, reflecting increased nervousness among investors.

Vinod Nair, Head of Research at Geojit Investments Limited, said the market remained under pressure as investors became more cautious about the global economic outlook.

“Bears remained firmly in control as the market breached a key psychological support level,” Nair said, pointing to concerns over worsening global macro conditions.

He added that the US rejection of a ceasefire proposal had raised fears that tensions in West Asia could last longer, increasing the risk of supply disruptions and higher commodity prices.

RISING YIELDS ADD TO MARKET WORRIES

Apart from geopolitical tensions and crude oil prices, rising US bond yields are also becoming a concern for investors.

Nair said the narrowing India-US yield spread could encourage foreign fund outflows and keep sentiment subdued. Selling remained broad-based as investors reassessed risks amid expectations of another US Federal Reserve rate hike.

“Market participants are likely to remain cautious ahead of the upcoming RBI policy decision,” Nair said, adding that global liquidity, bond yields, oil prices and policy signals would remain important market triggers.

NIFTY SLIPS BELOW 22,800

The sharp fall pushed the Nifty below the psychologically important 22,800 level, although some technical support levels remain in focus.

Riyank Arora, Associate Vice President – HNI & Derivatives, Hedged.in, said the fall was also linked to profit booking after the recent rally.

“The broader trend hasn't been dented — global and domestic cues remain the key swing factors from here,” Arora said.

He sees 22,700-22,650 as the immediate support zone for the Nifty, followed by stronger support around 22,550. On the upside, the 22,850-22,950 range remains important.

For the Sensex, Arora identified 72,600-72,400 as the key support zone, while 73,000-73,300 could act as resistance.

The market will now remain sensitive to global developments, particularly the situation in West Asia, crude oil prices and movements in US bond yields. Investors will also track upcoming economic data and the RBI's policy signals for further direction.

For now, the sharp fall has brought volatility back into focus. The coming sessions will show whether Monday's sell-off remains a temporary pullback or develops into a deeper bout of weakness.

(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)

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