The Indian markets began the trading week on a negative note as benchmark indices slumped in the early market session. As of 9:26 AM, the BSE Sensex tanked close to 600 points and traded at 74,722.79, while the NSE Nifty50 plunged more than 150 points to fall under the 22,650 mark at 22,623.10.
On the 30-share Sensex platform, M&M, Sun Pharma, Maruti, and ITC, emerged as the only exceptions in green. On the other hand, HCL Tech, Zomato, Tech Mahindra, TCS, and HDFC Bank dominated in red among the laggards.
In the broader markets, the indices traded lower. The Nifty Microcap 250 index drove the losses and fell 2 per cent in the morning market hours. Sectorally, the Midsmall & IT Telecom index dominated in red and crashed close to 3 per cent in the session so far.
As markets progressed, the indices continued to slump further. As of 9:47 AM, the Sensex plunged close to 700 points and fell further to 74,620, while the Nifty crashed more than 200 points to inch closer to the 22,500 mark at 22,582.
Why Are Markets Falling Today?
The slump in the markets could be attributed to weak trends seen abroad, consistent selling from foreign investors, and concerns about US tariffs. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Service, explained, "The market is facing headwinds from relentless FII selling and global uncertainties relating to Trump tariffs. The sharp surge in Chinese stocks is another near-term headwind. In the US, long-term inflation expectations are rising and, therefore, the expected rate cut by the Fed is unlikely to materialise."
Rupee Vs Dollar
The Indian rupee appreciated 1 paise to 86.67 against the US dollar in early trade on Monday, due to a weakening American currency against global counterparts. Forex traders noted that further gains in the domestic unit were weighed down by a sharp decline in the domestic markets, fall in the country's forex reserves, and consistent FII flows.
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Oil Prices And Forex Reserves
The global oil benchmark, Brent crude, stood flat at $74.43 per barrel in futures trade. Foreign institutional investors (FIIs) dumped Indian equities worth Rs 3,449.15 crore on Friday, official exchange data revealed. RBI's latest data showed that forex reserves in India plunged by $2.54 billion to $635.721 billion in the week ended February 14, putting an end to a three-week streak of gains.