Benchmark stock market indices closed lower on Monday, as global geopolitical tension weighed heavily on market sentiment. Rupee hit an all-time low going past 95 against the US dollar, despite RBI’s intervention.
The S&P BSE Sensex was down by 1.635.67 points to close at 71,947.55, while the NSE Nifty50 tanked 488.20 points to end at 22,331.40.
Vinod Nair, Head of Research, Geojit Investments Limited, said that amid unresolved global tensions, rising oil prices, and continued FII outflows, the market ended the final trading session of the current financial year on a cautious note.
“Banking stocks were among the key laggards following the RBI’s new restrictions on banks’ foreign exchange positions aimed at stabilising the rupee, which led to sharp declines across major private and public sector lenders,” he added.
After the closing bell, Tech Mahindra Ltd led the gains, rising 1.65%, followed by Power Grid Corporation of India Ltd, which was up 0.27%.
On the losing side, Bajaj Finance Ltd saw the sharpest fall, dropping 5.09%. State Bank of India Ltd declined 3.95%, Indigo Ltd was down 3.80%, Bajaj Finserv Ltd slipped 3.71%, and Axis Bank Ltd fell 3.59%, indicating broad weakness in early trade.
“While valuations now appear more favourable after the recent correction, the trajectory of earnings revisions remains the key determinant of market direction,” said Nair.
“Continued volatility in oil prices and rupee weakness may exert pressure on input costs, increasing the risk of near-term earnings downgrades,” he added.
