Heavy selling was seen in the Indian stock market on Monday. Investor sentiment remained weak during the day’s trading and a sharp fall in IT stocks pulled the entire market down. At the end of trading, Sensex fell 893 points to close at 76,200.68, while Nifty slipped 278.80 points to 23,824.10. Even on the Nifty-50 heatmap, most of the shares were seen in red, due to which the pressure in the market was clearly visible.
The biggest contributor to today’s decline was from IT companies. Infosys, TCS and Wipro were among the top losers of Nifty. Infosys fell by about 3.4 per cent, TCS by 3.2 per cent and Wipro by 3.1 per cent. Apart from this, sharp selling was also seen in HCL Tech and Tech Mahindra. The reason for increasing pressure on IT companies is believed to be the increased concern about the tech sector in the global markets and selling by foreign investors. Due to this, investors started booking profits in big IT stocks.
Nifty50 heatmap
Pressure in metal and banking shares also
Apart from IT, metal sector also became a victim of selling by investors. Nifty metal index fell more than 3 percent. Sharp weakness was seen in big stocks like JSW Steel, Tata Steel and Hindalco. The banking sector also could not support the market. Major stocks like HDFC Bank, SBI, ICICI Bank and Bajaj Finance closed in the red. Due to this, financial stocks also remained weak.
Adani and Reliance shares also increased concerns
The market decline was not limited to IT only. Adani Enterprises fell more than 3 per cent, while Adani Ports also fell more than 2 per cent. Shares of Reliance Industries also closed down by about 1.5 percent. Weakness in these big stocks created more pressure on Sensex and Nifty.
Pharma sector showed strength
While most sectors remained under pressure, pharma stocks provided relief. Cipla was the biggest gainer of the day and closed with a gain of over 1 per cent. Buying was also seen in Dr Reddy’s Laboratories and Sun Pharma. Due to the strength of the pharma sector, the Nifty Pharma index was successful in closing in the green.
Fear increased, India VIX jumped
The effect of increasing uncertainty in the market was also visible on the volatility index India VIX. It jumped by about 8 percent to reach the level of 13.94. A rise in the VIX is generally considered a sign of increasing fear and volatility in the market.
SK Sharma is a content writer who writes on news, entertainment, and lifestyle topics. She has over four years of experience and is known for conveying information in simple and clear language.
