Equity benchmarks tumbled to their lowest levels in eight months on Monday, with the Nifty at risk of recording its longest losing streak since 1996, as weak US economic data and tariff concerns triggered a broad market sell-off.
The BSE Sensex plunged 856.65 points or 1.14 per cent to close at 74,454.41, while the broader NSE Nifty 50 declined 242.55 points or 1.06 per cent to end at 22,553.35. In the last five trading sessions, the BSE barometer lost 1,542.45 points or 2 per cent, and the Nifty tanked 406.15 points or 1.76 per cent.
If the Nifty closes February in the red, it would mark its fifth consecutive monthly decline — a bearish pattern last seen 28 years ago.
IT stocks led the market rout, with the sector index dropping over 2 per cent. Wipro emerged as the biggest loser, falling 3.70 per cent, followed by HCL Technologies (-3.41 per cent), TCS (-3.04 per cent), and Infosys (-2.87 per cent). Bharti Airtel also declined 2.39 per cent.
“The market is more concerned about the US’s likely move to reciprocate higher tariff levies on exporting nations, which could impact developing countries including India,” said Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.
Gold shines
Against this backdrop of equity market weakness, gold found support, gaining ₹150 to reach ₹86,175. “Gold traded within a range, supported by Comex gold holding above $2,925 and moving toward $2,945,” noted Jateen Trivedi of LKP Securities, adding that rupee weakness provided additional support to MCX gold.
The broader market sentiment remained decisively negative, with declining shares outnumbering advancing ones by more than two to one on the BSE. Out of 4,200 stocks traded, 2,810 declined while 1,207 advanced, and 183 remained unchanged. Notably, 283 stocks hit 52-week lows compared to just 61 touching 52-week highs.
Some sectors showed resilience amid the carnage. M&M topped the gainers’ list, rising 1.54 per cent, followed by Dr Reddy’s Laboratories (1.14 per cent), Eicher Motors (1.09 per cent), Hero MotoCorp (0.82 per cent), and Nestle India (0.45 per cent).
“Global headwinds continue to weigh on the domestic market, with persistent volatility causing uncertainty among retail investors,” noted Vinod Nair, Head of Research at Geojit Financial Services. He added that weak US consumer sentiment and tariff concerns may further pressure export-oriented sectors such as IT.
The Indian rupee also weakened by 0.05 to 86.71 against the US dollar. “Rupee traded weak, pressured by a strong dollar index and FII sell-off in secondary markets,” said Trivedi.
Foreign Institutional Investors (FIIs) offloaded equities worth ₹3,449.15 crore on Friday, according to exchange data.
Foreign investors have pulled out over ₹23,710 crore from equity markets so far this month, pushing total outflows past ₹1 lakh crore in 2025 amid rising global trade tensions.
Technical analysts pointed to further weakness ahead. “The Nifty has broken down from a bearish flag and pole pattern, signaling the start of a correction,” said Rupak De, Senior Technical Analyst at LKP Securities. He identified immediate support at 22,450, with potential for further decline toward 22,200 if this level is breached.
Looking ahead, market experts see some potential relief. “The pace of earnings downgrades is expected to ease, supported by increased government spending, lower interest rates, and tax reductions. These factors are likely to provide a boost to sectors such as FMCG, consumer discretionary, and banking,” Nair added.
The volatility index, India VIX, showed a marginal decline of 0.60 per cent to 14.44, suggesting some easing in market fear levels despite the sharp decline in equity prices.
Global oil benchmark Brent crude rose 0.04 per cent to $74.46 a barrel.
Gold traders will be closely watching the Core PCE Price Index, a key US economic indicator, this week. The precious metal faces resistance at ₹86,450-₹86,600 and has support at ₹85,500-85,200, according to Trivedi.
