Equity markets extended their losses on Monday afternoon, with the Sensex dropping 499.19 points or 0.66 per cent to 75,691.27 and the Nifty falling 158.10 points or 0.68 per cent to 22,934.10, as foreign institutional investors continued to sell off.
The broader market saw a significant sell-off, with the Nifty Next 50 falling 1.64 per cent to 61,467.35 and the Nifty 500 declining 1.38 per cent to 21,025.40. Market breadth remained heavily negative, with 3,472 stocks declining versus 524 advances on the BSE.
The technology sector led the downturn, with Power Grid being the top loser, down 3.06 per cent. Other notable losers included Tech Mahindra (-2.87 per cent), Wipro (-2.61 per cent), HCL Tech (-2.42 per cent), and Tata Motors (-2.31 per cent). The sell-off intensified with 591 stocks hitting their lower circuit limits, while 452 stocks touched their 52-week lows.
On the flip side, banking and financial services sectors showed relative stability, with the Nifty Bank and Nifty Financial Services indices declining marginally by 0.16 per cent and 0.18 per cent, respectively. FMCG stocks provided some support, with Britannia Industries leading the gainers, up 1.86 per cent.
The market sentiment remained cautious due to the significant FII outflows of ₹69,000 crore in January. Traders are closely watching the upcoming Federal Reserve policy meeting and the Union Budget for guidance.
Technical indicators suggest immediate support for Nifty at 22,800, with resistance at 23,000. Selling pressure was evident across the market, with only 141 stocks hitting their upper circuit limits compared to 591 stocks touching the lower circuits.
Trading activity remained broad-based, with 4,136 stocks being traded on the BSE while 140 stocks remained unchanged. Market participants continue to assess the impact of potential US trade policies and persistent FII outflows on Indian equities.
