Indian stock markets started the week on a cautious note, with both the BSE Sensex and NSE Nifty tumbling in early trade. A mix of international headwinds and domestic anxieties weighed heavily on investor sentiment, prompting widespread sell-offs across key sectors.

Global Tensions, FII Selling, and Covid Resurgence Rattle Markets

As of Monday morning, the Sensex had slipped 581 points (0.71%) to 80,870, while the Nifty declined by 165 points (0.67%) to 24,586. The downturn followed a sharp rise in volatility, with the India VIX index climbing over 8%, signaling increased uncertainty among investors.

Several factors are driving this market pullback. Chief among them is renewed geopolitical tension between Russia and Ukraine, combined with the economic ripple effects of new U.S. tariffs on steel announced by President Trump. Meanwhile, the rise in domestic Covid-19 cases has reignited public health concerns, further shaking investor confidence.

Foreign institutional investors (FIIs) also contributed to the pressure by continuing to offload equities, further weakening the overall market sentiment. All eyes are now on the Reserve Bank of India’s monetary policy announcement later this week, which could provide critical guidance for the near-term market outlook.

Top Market Movers: Sectoral Performance and Key Stocks in Focus

Among the major drags on the Sensex and Nifty were prominent names such as HDFC Bank, Larsen & Toubro, Tata Steel, HCL Technologies, Reliance Industries, Infosys, and Bajaj Finance — all of which fell by as much as 1.7%.

However, not all was gloomy. Select stocks managed to buck the broader trend. Hindustan Unilever (HUL), Adani Ports, IndusInd Bank, Nestlé India, and State Bank of India (SBI) were among the top gainers, helping cushion the overall decline.

Sector-wise, tech and metals took the hardest hit. The Nifty IT index dropped 1%, while the Nifty Metal index followed closely with a 0.9% fall. Notably, public sector banks emerged as outliers, with the Nifty PSU Bank index rising 1.16% — driven by renewed optimism around credit growth and improved balance sheets.

What This Means for Investors

With global cues turning increasingly volatile and domestic factors like Covid cases and central bank decisions in play, investors should brace for continued market choppiness. Analysts recommend a cautious approach in the short term, focusing on fundamentally strong sectors such as consumer staples and banking.

As the RBI policy outcome approaches, traders and long-term investors alike will be watching closely for any shifts in interest rates or liquidity measures that could steer market direction.

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