Sensex falls to 71,850, Nifty slips below 22,400 as HDFC Bank, HCL Tech lead selloff
Indian equities fell again on Monday, with foreign investor selling and crude oil above $100 a barrel weighing on sentiment.
Indian stock markets fell again on Monday. The market had traded in negative territory for eight straight weeks, so some positive mood had been expected at the start of the ninth. Given conditions in recent days, the pressure on the market was just as heavy.
Monday began on a good note. Helped by an improved mood in global markets, the Indian market opened strongly and the Nifty rose to 22,621.80 points during trading. Around 12 noon, however, the Nifty suddenly turned down. Pressure built from there and the index slipped below 22,400. The Sensex also fell to 71,850 points at noon.
HDFC Bank and HCL Tech shares led the decline. Shares of HDFC Bank, the largest company on the index, saw heavy selling of about 2.50 per cent, which weighed on the Nifty Bank index. Asian Paints shares also dropped 2.5 per cent.
Selling by foreign institutional investors is said to be the biggest reason for the fall. Foreign investors have been steadily pulling money out of the Indian market. With the dollar index strengthening and US Treasury bond yields rising, foreign funds are moving money out of emerging markets such as India into safer options. This is having a direct impact on the Indian market.
Geopolitical uncertainty around the world and volatility in crude oil prices have also raised fears that the Indian economy and company profits could be affected. Crude oil prices are trading above $100 a barrel. According to market experts, volatility and pressure may persist until the Nifty again touches the 22,650-22,700 level.
There have also been some good signals from the US. Markets there are rising, yet the Indian market continued to fall. Accenture's results for the fourth quarter of July-September 2026 supported IT shares in the domestic market. On October 1, Accenture shares jumped 22 per cent, the company's best day in its history.
On the other hand, US job growth in September was lower than expected, and non-farm payroll data for the past two months showed a sharp decline. As a result, the chance of the Federal Reserve raising interest rates this month has all but ended.
