Stock markets witness selling, Nifty sinks to 6-month low

New Delhi, Sep 28 (UNI) Indian stock markets on Monday begin the week on a weak note, with the Nifty slipping below 22,800 intraday. Markets witness broad-based selling, extending their seven-week losing streak.

Markets saw intensified selling pressure with the Nifty moving closer to a six-month low. It was weighed down by weak global cues, elevated crude oil prices and bond yields. At close, the Sensex was down 1,124.02 points or 1.52 percent at 72,771.72, and the Nifty was down 360.25 points or 1.56 percent at 22,780.25. Nifty midcap index falling 1.6 percent and smallcap index declining 1.8 percent. Among the sectors, all the indices ended in the red. PSU Bank index was down 3%, Telecom index shed 2.3%, while Energy, Infra, FMCG, Realty, Private Bank, Metal and Oil & Gas down more than 1% each. On Nifty, the gainers were Tech Mahindra, Dr Reddy's Labs and Infosys while losers included Jio Financial, Tata Motors Passenger Vehicles, L&T, Adani Enterprises and Adani Ports.

More than 190 stocks touched 52-week low, including IRB Infra, India Cements, Bank of Baroda, Aditya Birla Lifestyle Brands, Tata Consumer Products, Ambuja Cements, CESC, Tata Motors Passenger Vehicles, Eris Life, Power Finance, HUL, General Insurance, Ircon International, Jio Financial, ACC, Reliance Power, Bayer CropScience, P&G Hygiene, Reliance Industries, SJVN, among others. In terms of some of the individual performances, Prestige Estates Projects declined 1%, Unichem Laboratories share price fell 2%, Hero Motors shares hit the 10% lower circuit, and PC Jeweller have marched higher in a strong recovery rally.

Vinod Nair, Head of Research, Geojit Investments Limited said, "Bears remained firmly in control as the market breached a key psychological support level, reflecting growing investor caution amid deteriorating global macro conditions. The U.S. rejection of the ceasefire proposal has heightened concerns that tensions in West Asia could persist for longer than anticipated, reducing the likelihood of a near-term diplomatic resolution and increasing the risk of prolonged supply-side disruptions and higher commodity prices."

"While rising U.S. bond yields are narrowing the India-U.S. yield spread, potentially leading to foreign fund outflows and keeping market sentiment cautious. Selling pressure remained broad-based across sectors as investors reassessed risk amid growing expectations of another Fed rate hike."

UNI VK AAB