Closing Bell: Market Plummets To A 2-Week Low Amid Geopolitical Tensions; Sensex & Nifty Plunge 1% Each

The Indian stock market closed at a two-week low as escalating geopolitical tensions weighed heavily on investor sentiment. The frontline indices, Sensex and Nifty, witnessed a significant decline of more than 1%, with broader markets suffering even greater losses. Despite attempts at intra-day recovery, the market ultimately succumbed to selling pressure, ending the day at its lowest point.

The BSE-listed companies collectively shed more than Rs 5 lakh crore in market capitalization on Monday. The Sensex tumbled by 845 points to 73,400, while the Nifty plummeted by 242 points to 22,278. The Nifty Bank was hit hard, slipping by 791 points to 47,773, and the Midcap Index recorded a decline of 787 points to 49,281.

Most sectoral indices witnessed a downward trajectory, with the financial space particularly weak. All Nifty Bank constituents faced losses, with ICICI Bank emerging as a significant drag on both Nifty and Nifty Bank. Meanwhile, IT stocks continued to reel under pressure following disappointing earnings from TCS, experiencing declines ranging from 3% to 5%.

Despite the overall downturn, some stocks managed to buck the trend. ONGC defied the market trend and surged by 5% following a positive brokerage note. Select metal companies benefited from rising prices, with Hindalco registering a gain of 2%. Maruti staged a modest recovery, offsetting losses from the previous session with a 2% gain.

City gas companies witnessed buying interest after the BJP manifesto highlighted "Piped Gas For All," driving up stock prices in the sector. Exide Industries continued its upward trajectory, climbing by another 3% after receiving an increased price target from Morgan Stanley, now set at Rs 485 per share.

Market breadth heavily favoured declines, with the advance-decline ratio at 1:5, reflecting the widespread bearish sentiment among investors. The volatility index surged by 8%, indicating heightened market uncertainty amid geopolitical tensions.

On the currency front, the Indian Rupee ended marginally weaker at 83.45 against the US dollar compared to Friday's close of 83.41, as investors sought safe-haven assets amidst global uncertainty.

The Indian stock market witnessed a tumultuous day of trading, marked by significant declines across indices amidst escalating geopolitical tensions. While some stocks managed to eke out gains, the overall sentiment remained bearish, with investors adopting a cautious approach.

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