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Indian stock markets experienced a sharp decline on Monday due to weak global cues influenced by developments in the U.S. and the Middle East. Investors are increasingly concerned about the potential for a recession in the U.S., following the release of disappointing job data. Additionally, geopolitical tensions have risen after the Lebanese militant group Hezbollah launched a drone attack in Israel.
At the close of trading, the BSE Sensex plummeted by 2,225 points, or 2.7%, to 78,759.40, while the NSE Nifty 50 fell by 662.10 points, or 2.7%, to 24,055.60.
Tata Motors was the hardest hit among the stocks, with shares plunging more than 7%. Oil & Natural Gas Corporation (ONGC) and Adani Ports & Special Economic Zone also saw substantial declines, contributing to the overall market slump.
On the positive side, Hindustan Unilever, Nestle India, and HDFC Life Insurance managed to buck the trend, emerging as gainers despite the widespread sell-off.
In corporate news, Adani Ports and Special Economic Zone announced a 9.5% year-on-year growth in cargo volumes for July, with a total of 37.3 million metric tons handled. This growth, announced in a filing with the Indian bourses on Monday, stands out amid the overall negative market sentiment.
Additionally, the Indian Energy Exchange (IEX) saw a significant rise in the volume of electricity traded on its platform. In July, the volume reached 13,250 gigawatt-hours, marking a 56% increase compared to the same period last year. This positive development was detailed in a press release filed with the Indian bourses on Monday.
Despite these pockets of good news, the broader market’s reaction to external economic and geopolitical factors highlights the vulnerability of Indian equities to global events. Investors will likely remain cautious as they monitor ongoing developments in the U.S. and the Middle East, which continue to influence market sentiment.