The Indian stock market finished lower on Monday, with both the Nifty 50 and Sensex reaching their lowest points in seven months. This drop came after disappointing earnings reports from many companies, raising fears that corporate profits might keep falling.
The benchmark BSE Sensex fell by 824.29 points (1.08%), closing at 75,366.17. The broader Nifty 50 also dropped, ending at 22,829.15, down by 263.05 points (1.14%). Analysts noted that selling pressure was widespread across all sectors due to weak earnings and global concerns, with smaller and mid-sized companies feeling the effects of high valuations.
Vinod Nair, Head of Research at Geojit Financial Services, explained that foreign investors are selling shares because of slowing economic growth and the decline of the Indian rupee. He also mentioned that the US trade conflicts, like the one with Colombia, are adding to the market’s nervousness. Looking ahead, he warned that more market movement is expected this week due to important events like the FOMC meeting and the upcoming Union budget.
In the US, major markets like the S&P 500 and Nasdaq also fell to their lowest levels in over a week. Rising interest in a less expensive AI model from a Chinese startup named DeepSeek caused shares of Nvidia and other AI-related companies to drop. This new AI Assistant became the top free app in the US App Store, challenging conventional thoughts about AI’s demand for chips and data centers.
Nvidia shares fell by 11.7%, while semiconductor stocks dipped by 6.5%. Most sectors of the S&P 500 were down, particularly technology stocks, which fell by 4.5%. Companies like Microsoft, Meta, and Google-parent Alphabet all saw declines between 2.2% and 3.5%.
Technical analyst Rupak De pointed out that the Indian market is looking increasingly negative, especially if the Nifty 50 stays below 23,000 points. There is a possibility for it to drop further down to 22,500.
Among the most traded stocks today, ICICI Bank, HDFC Bank, and Infosys were leaders in turnover, while Vodafone Idea and YES Bank had high trading volumes. Certain stocks, like Bank of India and Torrent Pharmaceuticals, also saw strong buying interest.
Despite some stocks hitting their 52-week highs, many others sank to their lows. Overall, market sentiment was gloomy, with 3,522 stocks dropping compared to just 593 that rose.
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