Markets in freefall for 4th day amid limp consumer demand
Indian benchmark equity indices, BSE Sensex and NSE NIFTY50, plummeted over 1 per cent each on Monday. The 30-share Sensex tumbled as much as 1,048.90 points or 1.36 per cent to settle at 76,330.01. Similarly, NSE NIFTY50 also ended lower by 345.55 points or 1.47 per cent at 23,085.95.
“Domestic benchmark index NIFTY opened with a significant gap down, in line with global cues, continued weakness, and closed negatively at 23,086 levels. The volatility index, India VIX, rose by 7.25 per cent to 16.0, reflecting increased market volatility,” Hrishikesh Yedve, AVP Technical and Derivatives Research, Asit C Mehta Investment Interrmediates Ltd, said.
All sectoral indices on the NSE platform ended in the red. Bank NIFTY opened negatively, extended its downward trend, and settled the day on a negative note at 48,041.
According to analysts, the global markets witnessed a significant sell-off, prompting a similar response in domestic markets due to strong US payroll data suggesting fewer rate cuts in 2025. This has strengthened the dollar, driven up bond yields, and made emerging markets less attractive.
According to brokers, there are many factors which led to fall. Among the major reasons include profit booking by foreign investors, tepid consumer demand and weak capital expenditure by the Union Government during the first half of the current fiscal.
