Although the benchmark indices opened lower, they traded on a negative note throughout the session and ultimately closed red.
Indian equity benchmark indices, Sensex and Nifty50, ended sharply lower as oil prices advanced, raising concern about price pressure amid heightening geopolitical pressure.
At the closing bell, the BSE Sensex closed 1,124 points lower (down 1.5%)
Meanwhile, the NSE Nifty closed 360 points lower (down 1.5%)
Infosys is the top gainer today.
HDFC Bank, HUL, and Power Grid Corp, on the other hand, were among the top losers today.
The GIFT Nifty was trading at 22,824 with 411 points lower at the time of writing.
The BSE 150 Midcap index is trading 1.6% lower, and the BSE 250 SmallCap index is trading 1.6% lower.
Sectoral indices were trading negative today with stocks in power sector and telecommunication sector witnessed selling pressure.
6 reasons why Indian share markets are falling:
#1 Banking Stocks
Banking stocks came under heavy pressure, with the Nifty Bank falling over 1,000 points to an intraday low of 54,494.40. YES Bank, Union Bank, IDFC First Bank, Canara Bank and Punjab National Bank were among the major losers.
#2 US Bond Yields
The rise in the 10-year US bond yield to around 5.2% increased pressure on Indian stocks. Higher US bond yields can attract investors towards US government bonds, reducing the appeal of emerging markets like India.
3# Foreign Investors Continue Selling
Foreign investors continued to sell Indian equities, with selling seen in four out of five trading sessions last week. Meanwhile, domestic institutional investors continued to provide buying support to the market.
#4 Oil-Sensitive Stocks
Oil-sensitive stocks such as Indian Oil, Hindustan Petroleum, Bharat Petroleum, Asian Paints and Apollo Tyres declined as crude oil prices moved higher. Brent crude rose to around $107 per barrel, increasing concerns over higher costs for companies.
#5 Trump Rejects Peace Proposal
US President Donald Trump rejected the latest peace proposal involving Iran, while indicating that further talks could take place this week. The uncertainty around the conflict and the Strait of Hormuz added to concerns in global markets.
#6 India VIX
India VIX, which measures expected market volatility, jumped as much as 16.3% to 14.15. The sharp rise reflected increased uncertainty and nervousness among investors as the broader market declined.
The rupee is trading at Rs 96.00 against the US$.
Gold prices for the latest contract on MCX are trading 2.3% lower at Rs 1,47,385 per 10 grams.
Meanwhile, silver prices were trading 3.1% lower at 2,27,338 per 1 kg.
SignatureGlobal Adds Major Gurugram Development Project
SignatureGlobal's shares came into focus on Monday after the company announced a new luxury farmhouse villa project in Gurugram West.
The project will cover 194.22 acres and add around 6.77 million sq. ft. of development potential to the company's portfolio. It is expected to have a gross development value (GDV) of around Rs 55-60 billion (bn).
According to the company, the project will be an ultra-luxury, invitation-only residential development featuring premium farmhouse villas, large green spaces and landscaped areas. It is aimed at customers looking for privacy, space and a relaxed lifestyle.
The project is around a 15-minute drive from the Dwarka Expressway. It also has access to the KMP Expressway and is located along Farrukhnagar-Wazirpur Road. This will provide connectivity to major residential and commercial areas of Gurugram, Delhi and the wider NCR.
ITC Expands Dairy Business Across Eastern India
ITC is expanding its fresh dairy business in Eastern India under its Aashirvaad brand. The company is focusing on Bihar, West Bengal and Jharkhand, where demand for branded milk and value-added dairy products is growing.
The company is also developing products based on local tastes and changing consumer preferences. ITC is looking at new and healthier dessert options to expand its value-added dairy range beyond Mishti Doi.
According to Hemant Malik, CEO of ITC's Foods Division, Eastern India will remain an important market for the company because the region has significant potential for dairy growth. ITC says its dairy business is currently growing at a high double-digit rate.
ITC has dairy manufacturing facilities in Bihar, Jharkhand and West Bengal. Through its Project Gomukh initiative, the company works with more than 40,000 dairy farmers and directly purchases milk from them. The project aims to improve milk quality and productivity while helping farmers increase their incomes.
The dairy expansion is part of ITC's larger plan to strengthen its FMCG business.
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