Indian Stock Markets Tumble as Global Concerns Weigh Heavy

India's stock indices fell sharply on Monday, driven by a mix of local and global factors. All sectoral indices finished in the red, with the Small Cap index seeing its biggest one-day fall in months. Concerns over the Fed meeting and rupee depreciation intensified market caution.

Indian stock markets experienced a steep decline on Monday, marking an inauspicious start to the week as investors grappled with a confluence of unfavorable local and global factors.

All sectoral indices, including media, metal, pharma, PSU banks, private banks, realty, and consumer durables, fell sharply during the session.

The Sensex closed at 85,102.69 points, down 609.68 points or 0.71%, while the Nifty ended at 25,960.55, falling 225.90 points or 0.86%.

Sector-wise, Nifty India Defence was the biggest loser, down 3.68%, followed by a 3.53% drop in Nifty Realty.

Despite this decline, TechM and Wipro managed gains, with Nifty IT showing resilience compared to other sectors. Indigo and BEL emerged as the day's top losers.

The Small Cap index saw its sharpest single-day drop since September 2025, descending 2.61% amid waning risk appetite in the broader market.

Experts attributed the market's bearish sentiment to uncertainty surrounding the upcoming Federal Reserve meeting, with fears of a tighter global monetary stance affecting emerging markets like India.

Compounding the issue was the weakened rupee, further pressured by foreign institutional investor (FII) outflows, raising concerns over inflation and import costs.

Despite strong domestic growth figures and a recent rate cut by the Reserve Bank of India, short-term sentiment is overshadowed by these global concerns, said Vinod Nair, Head of Research at Geojit Investments Limited.

The Indian rupee on Monday marked its second consecutive day of depreciation, testing the 90 mark against the US dollar.

The currency's decline was linked to the RBI's decision to lower its benchmark interest rate and introduce liquidity measures, escalating the downward pressure.

Dilip Parmar, a Senior Research Analyst at HDFC Securities, stated that technical charts show the USD-INR facing near-term resistance at 90.40, with critical support at 89.70.

(With inputs from agencies.)