Benchmark stock market indices closed lower on Monday due to global geopolitical tensions impacting market sentiment. The Indian Rupee hit a record low against the US dollar, surpassing 95, despite intervention from the Reserve Bank of India.
The S&P BSE Sensex dropped by 1,635.67 points to settle at 71,947.55, while the NSE Nifty50 fell by 488.20 points to close at 22,331.40.
Vinod Nair, Head of Research at Geojit Investments Limited, noted that unresolved global tensions, increasing oil prices, and continuous FII outflows led the market to end the current financial year cautiously.
Banking stocks faced significant declines following the RBI’s implementation of new restrictions on banks’ foreign exchange positions to stabilize the rupee, resulting in sharp drops across major private and public sector lenders.
After the market closed, Tech Mahindra Ltd posted the highest gains at 1.65%, followed by Power Grid Corporation of India Ltd, which rose by 0.27%.
On the downside, Bajaj Finance Ltd experienced the steepest decline, falling by 5.09%. State Bank of India Ltd decreased by 3.95%, Indigo Ltd by 3.80%, Bajaj Finserv Ltd by 3.71%, and Axis Bank Ltd by 3.59%, indicating broad weakness at the start of trading.
Nair highlighted that while valuations have become more favorable post the recent correction, the direction of earnings revisions remains crucial for market trends. He also pointed out that ongoing volatility in oil prices and rupee depreciation could elevate input costs, potentially leading to near-term earnings downgrades.