Mumbai, June 23: After a period of consistent gains, the Indian stock market closed in the red on the second trading day of the week. Heavy selling in the metal, IT, and public sector bank stocks, coupled with weakness in Asian markets and ongoing foreign investor sell-offs, led to a decline of over 1.1% in both the Sensex and Nifty indices. The downturn in global stock markets also impacted domestic indices.
The BSE Sensex, comprising 30 stocks, fell by 893.39 points, or 1.16%, closing at 76,200.68. Meanwhile, the NSE Nifty50 dropped by 278.80 points, also down 1.16%, to reach 23,824.10.
In broader market performance, the Nifty Midcap and Nifty Smallcap indices closed down by 1.05% and 0.48%, respectively.
Sector-wise, the Nifty Metal index saw a decline of over 3%, making it the worst-performing sector. The IT and public sector banks also underperformed, while the Nifty Pharma and Nifty Healthcare sectors showed better resilience.
Among the Nifty50 constituents, Infosys, Wipro, TCS, and JSW Steel were the hardest hit. Additionally, shares of Tata Steel, Hindalco, BEL, and Jio Financial Services recorded declines of over 2%.
The Indian stock market faced a significant blow from South Korea, where the main index, KOSPI, plummeted by up to 10%, prompting a 20-minute trading halt to manage investor panic and heavy selling. Even after trading resumed, KOSPI’s decline extended to over 9%.
Furthermore, Japan’s Nikkei 225 fell by approximately 3.2%, China’s Shanghai Composite dropped by up to 2%, and Hong Kong’s Hang Seng index also traded about 2% lower. Foreign investors continued their sell-off, with FIIs offloading shares worth around ₹635.91 crores on Monday. The rupee depreciated by 6 paise against the dollar, settling at 94.69. All these factors contributed to increased pressure on the domestic market, leading to further declines towards the end of the trading session.
A market expert noted that negative global signals and a cautious atmosphere led to a failure of initial gains, weakening market sentiment. The pressure to book profits after recent gains intensified the decline, resulting in widespread weakness across key sectors.
The expert further explained that the metal sector experienced the most significant drop due to concerns over demand amid falling global prices and an uncertain environment. The domestic IT sector also faced pressure, driven by declines in the global tech sector and ongoing worries about changes in the Indian IT landscape due to AI advancements.
Despite some relief from stable crude oil prices and reduced geopolitical tensions, investors remained cautious, focusing on the progress of the monsoon and ongoing trade discussions between the U.S. and India.
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