All four frontline indices closed nearly 2% lower, with the Nifty Bank emerging as the biggest underperformer. Here are five factors behind the market’s fall at close:
1. Rising crude continues to weigh on market
Rising crude continued to weigh on the market, with seven Nifty stocks closing at their 52-week lows.
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2. Broad-based selling
The sell-off was broad-based, with 47 of the 50 Nifty stocks ending lower. Stocks declined by as much as 3%. BSE-listed companies lost ₹8 lakh crore in market capitalisation during the session.
3. Nifty Bank, PSU banks slide
The Nifty Bank fell 1,109 points to 54,472, making it the biggest underperformer among the four frontline indices. The Nifty PSU Bank index declined more than 3%.
4. All sectoral indices end lower
All sectoral indices closed in the red, while the volatility index jumped 13%. Gold financiers also declined, tracking gold prices, with Manappuram Finance slipping 6%.
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5. NSE, BSE fall on SEBI panel report
NSE and BSE declined following reports that the Securities and Exchange Board of India (SEBI) is considering forming a panel on self-listing. Despite Monday’s fall, the Nifty is now up 2% in the first half of FY27 and is set for the first half of a financial year in four years.
Dr Reddy’s Laboratories, Infosys and HDFC Life were the three Nifty stocks to close in the green. Air-conditioner companies also gained on expectations of a price hike, with Voltas rising 2%.
Jio Financial Services Ltd, Larsen & Toubro Ltd, Power Grid Corporation of India Ltd, Oil and Natural Gas Corporation Ltd, Shriram Finance Ltd, ICICI Bank Ltd, Trent Ltd, Hindalco Industries Ltd, JSW Steel Ltd and NTPC Ltd were the biggest laggards.ALSO READ | Dhoot Transmission shares drop for fourth day after Kotak warns of 10% fall on valuation risks
Gurmeet Chadha, Managing Partner & CIO, Complete Circle, on stocks and sector picks, said, “We used any weakness to add more to Solar Industries – that is our top holding now. Q2 earnings will also be pretty strong, both in terms of the explosive businesses, power demand being very strong.
So good mining activity, and I think the defence export part continues to do well. In fact, I’ll not be surprised if the defence revenues actually cross the ₹4,000 crore guidance they are working with. Obviously, the street is a little nervous with debt coming in, and initial teething issues happen with any large acquisition, fair enough.
Secondly, we, as I said, we have added some chemical names. We have JG Chemical in the portfolio. We added Alkyl Amines – I think there could be some significant earnings traction in chemical companies, led by the AI capex, led by Yuan appreciating almost 18-20% to the rupee, and we are seeing a lot of inventory destocking happening there.
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Very good traction in CDMO names. It’s one pocket which has done well despite the sell-off. I think a lot of our larger names are seeing that China Plus One playing out. Significant capex is being done across Divi’s Laboratories, Laurus Labs, Neuland Laboratories, and Sai Life Sciences very good names there. I think this is one space which is looking for probably multi-year growth.”