Indian equity indices ended the session on Monday, October 19, in red, falling sharply over 1 per cent to break the last two days of gaining momentum. BSE's 30-share index-- Sensex-- fell 876.37 points, or 1.17 per cent, to close at 73,852.90, while the Nifty50, the 50-share index of NSE, fell 257.20 points, or 1.11 per cent, to 22,888.95.
3 Factors Dragged Stock Market Today
1-Selling In IT Stocks
Indian market came under renewed selling pressure, breaking the recent recovery as weak global cues and selling in private banks and IT stocks weighed on investor sentiment.
"Global markets remained cautious ahead of a busy week of corporate earnings. Private banks remained under pressure following quarterly earnings and concerns over margin trends, while PSU banks bucked the broader weakness, supported by expectations of relatively resilient margins and asset quality," said Vinod Nair, Head of Research, Geojit Investments Limited.
HDFC Bank, ICICI Bank and Axis Bank together accounted for a major decline in Sensex. At the same time, Nifty Private Bank index fell around 1.8 per cent.
2- Elevated Crude Rates
Crude prices remained elevated, with geopolitical tensions continuing to influence the outlook. At the time of writing, Brent Crude--December Expiry--was trading at a level of $108 per barrel. WTI Crude was trading at a level of $100 per barrel.
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3- Subdued Global Cues
Stock markets in Europe were trading in negative territory. Meanwhile, Asian markets showed a mixed trading pattern. South Korea's Kospi and Shanghai's SSE Composite index ended in positive territory, while Japan's Nikkei 225 index settled lower.
"Global cues offered little support to domestic sentiment. Asian markets traded mixed following Friday’s losses on Wall Street, where concerns over the scale of investment in artificial intelligence weighed on risk appetite," said Ponmudi R, CEO of Enrich Money.
Top Losers And Gainers
From the 30-share Sensex basket, UltraTech Cement, Infosys, Bajaj Finance, Trent, NTPC and HDFC Bank ended the session in negative territory.
Adani Ports, State Bank of India, Larsen & Toubro, indigo and Maruti Suzuki settled in green.