Indian stock markets tumbled over 1% on Monday, weighed down by mixed global cues and domestic challenges. The Sensex fell 1,048.90 points to close at 76,330.01, while the Nifty dropped 345.55 points to settle at 23,085.95.
Investors suffered a massive ₹12 lakh crore loss due to heavy selling in realty, PSU banks, metals, auto, and pharma stocks. The realty sector led the decline, shedding over 6%.
Key Factors Behind The Plunge
Global markets saw a sell-off following strong US employment data, which suggested fewer rate cuts in 2025. This strengthened the dollar, pushed up bond yields, and reduced the appeal of emerging markets.
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Rising crude oil prices, a weakening rupee, and continued foreign capital outflows further pressured the domestic markets.
Expert Insights
Rupak De of LKP Securities noted increased bearish sentiment as the Nifty breached key levels. “The index held the 23,000 mark, a crucial support. Sustaining above it could signal recovery, but a decisive fall might deepen the correction,” he said.
Sectoral Performance
The Nifty Bank dropped 692.90 points to close at 48,041.25. The Nifty Midcap 100 fell 4.02%, while the Nifty Smallcap 100 declined 4.10%.
In the Sensex pack, Zomato, Power Grid, Tata Steel, NTPC, and Tata Motors were the top losers. Axis Bank, TCS, and Hindustan Unilever emerged as the top gainers.
FII And DII Activity
Foreign institutional investors (FIIs) remained net sellers for the sixth consecutive day, offloading equities worth ₹2,254.68 crore on January 10. In contrast, domestic institutional investors (DIIs) bought equities worth ₹3,961.92 crore, partially cushioning the fall.
Market watchers now await further cues from global markets and key economic data to gauge future trends.