Indian equity markets witnessed a sharp decline on Monday, with the Sensex falling 500 points and Nifty slipping below 26,150, as investor sentiment turned cautious amid geopolitical tensions and domestic concerns.
Key factors behind the decline include:
- HDFC Bank shares hitting a three-month low after its December business update, weighing on financial indices.
- Concerns over global macroeconomic conditions and rising crude prices.
- Profit booking in IT and FMCG stocks after recent rallies.
- Foreign Institutional Investors (FII) selling pressure in select sectors.
- Uncertainty in global markets due to ongoing geopolitical developments.
Analysts suggest that while broader markets are under pressure, selective buying opportunities may arise in defensive and export-oriented stocks as volatility persists.
