Source : INDIA TODAY NEWS
Markets took a downward turn in the afternoon session as both benchmark indices fell over 1% on Monday’s trading session. The Sensex fell nearly 930 points on Monday as a sharp sell-off in private sector banking stocks, led by Axis Bank and HDFC Bank, dragged benchmark indices lower.
Investors remained cautious after the lenders’ September-quarter results, while elevated crude oil prices amid tensions around the Strait of Hormuz added to concerns over inflation and foreign investor flows.
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The BSE Sensex was trading at 73,800.08, down 929.19 points or 1.24%, at 1:24 pm. The NSE Nifty 50 fell 275.05 points, or 1.19%, to 22,871.10 at 1:25 pm.
The decline came after Indian equities rallied sharply last week. However, Monday’s losses suggest investors remain cautious about bank earnings, elevated oil prices and the sustainability of foreign investor buying.
HDFC BANK, AXIS BANK LEAD THE SELL-OFF
Private sector banks were among the biggest drags on the market after investors assessed the latest quarterly results from major lenders.
Axis Bank shares fell 4.15%, while HDFC Bank declined 2.72%. Yes Bank dropped 2.63%, Kotak Mahindra Bank lost 1.87% and Bandhan Bank slipped 1.34%. ICICI Bank was down 0.63% in the broader stock, while Bajaj Finance fell 1.55% and Bajaj Finserv declined 2.07%.
HDFC Bank reported a 4.7% year-on-year rise in September-quarter net profit to Rs 19,510 crore. However, lower other income, higher operating expenses and provisions partly offset growth in core interest income. Its net interest margin narrowed to 3.16% from 3.30% in the previous quarter.
Axis Bank reported a standalone net profit of Rs 7,003 crore, slightly below analysts’ expectations of Rs 7,124 crore. Higher operating costs and weaker non-interest income weighed on investor sentiment.
The market reaction highlights investors’ focus on margins, operating expenses, treasury income and asset quality, rather than headline profit growth alone.
FII SELLING REMAINS A CONCERN
Foreign institutional investors (FIIs) were net buyers in the cash market on Friday, purchasing shares worth Rs 1,165.92 crore, according to the data provided. This followed net selling of Rs 5,285.37 crore on Thursday.
However, one session of buying does not necessarily signal a sustained reversal in foreign flows. FIIs have been persistent sellers of Indian equities through much of 2026, adding pressure to the market and leaving it vulnerable to shifts in global risk appetite.
The latest figures also showed domestic institutional investors (DIIs) were net sellers worth Rs 3,661.28 crore on Friday, after buying shares worth Rs 3,319.39 crore on Thursday.
The alternating daily flows underline the volatility in institutional activity. Investors will be watching whether foreign buying continues over the coming sessions or whether the longer-running selling trend resumes.
CRUDE OIL PRICES ADD TO MARKET PRESSURE
Crude oil remains another major risk for Indian equities. Brent crude was trading at $107.27 a barrel, while US West Texas Intermediate crude stood at $99.58.
Escalating tensions around the Strait of Hormuz have raised concerns about oil supply and prices. For India, which imports a large share of its crude oil requirements, a sustained rise in prices can increase the import bill, put pressure on the rupee and complicate the inflation outlook.
Higher oil prices can also squeeze corporate margins and household purchasing power. Together with uncertainty around global interest rates and foreign investor flows, this has encouraged a more cautious approach to equities.
BROADER MARKETS ALSO DECLINE
The sell-off extended beyond the benchmark indices. The Nifty 100 fell 1.01%, the Nifty 200 declined 0.96% and the Nifty 500 dropped 0.95%.
The Nifty Midcap 50 fell 0.68%, the Nifty Midcap 100 declined 0.80% and the Nifty Smallcap 100 slipped 0.76%.
Sectoral indices were largely lower. The Nifty Private Bank index fell 1.94%, while the Nifty Financial Services 25/50 index declined 1.45%. The Nifty FMCG index dropped 1.43% and the Nifty IT index fell 1.54%. Realty, consumer durables and chemicals stocks were also under pressure.
The Nifty PSU Bank index bucked the trend, rising 2.19%, highlighting the divergence between public sector and private sector lenders. India VIX, a gauge of expected market volatility, rose 5.65% to 14.86.
WHAT SHOULD INVESTORS WATCH NEXT?
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the momentum from last week’s 2.8% Nifty rally and encouraging results from major IT and banking companies could help markets remain resilient.
However, he cautioned that rising tensions around the Strait of Hormuz and Brent crude prices near $109 a barrel could act as a strong headwind. He added that attractive large-cap valuations and a stronger rupee had made foreign investors somewhat more positive towards India, but high crude prices could make that shift difficult to sustain.
Vijayakumar expects large-cap stocks to continue outperforming mid- and small-cap shares, with market movements this week likely to be stock-specific as companies report quarterly results.
For investors, the key signals will be the performance of bank margins, the direction of crude oil prices and whether foreign institutional buying can become more consistent. Friday’s net FII buying is a positive data point, but it is too early to conclude that the longer-term selling trend has reversed.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
– Ends
SOURCE :- TIMES OF INDIA
