Indian stock markets saw a sharp sell-off on Monday, with both the Sensex and Nifty dropping more than 1%. The fall erased an estimated Rs 5.64 lakh crore from the total market capitalisation of companies listed on the BSE, reflecting broad-based weakness.
The decline was led by heavyweight private bank counters such as ICICI Bank and HDFC Bank, which dragged the benchmarks lower. Apart from a few stocks, most frontline shares and sectors traded in the red, with the weakness extending beyond large-caps to mid- and small-cap segments as well.
Analysts attributed the pressure to a fresh rise in global crude oil prices, which reportedly touched around $110 a barrel. With inflation concerns already present and central banks having raised interest rates, the renewed oil spike added to fears of higher inflation and further rate hikes.
Banking stocks also came under selling after September-quarter results from leading private lenders disappointed investors. Experts cited lower profit margins, higher costs and intensified competition for deposits as key factors behind the negative sentiment.
In addition, continued selling by foreign investors, weak cues from Asian markets such as Japan, South Korea and Indonesia, and profit-booking after a gradual recovery over the previous four sessions contributed to the day’s decline.
