- Indian equities fell sharply, with Nifty 50 down 0.85% near midday on Monday
- Private banks led losses after Q2 earnings disappointed investors and analysts
- Global tech stocks declined due to weak US cues and AI investment concerns
Indian equities extended losses in Monday's session, with the benchmarks trading near the day's lows by noon. At 12:30 pm, the Nifty 50 was at 22,948.95, down 197.20 points or 0.85%, after touching an intraday low of 22,922.95, down 223.20 points or 0.96%. The BSE Sensex was at 74,032.63, down 696.64 points or 0.93%, after hitting an intraday low of 73,962.43, down 766.84 points or 1.03%.
The selling was milder in the broader market. At 12:34 pm, the Nifty Midcap 100 was at 58,778.3, down 351.45 points or 0.59%, and the Nifty Smallcap 100 was at 19,024.4, down 117.40 points or 0.61%. The India VIX, the market's fear gauge, jumped 5.6% to 14.84, a sign that traders expect more volatility in the near term.
Here are three reasons why markets are down today:
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Private Banks Top Drag
Banks were the biggest drag on the indices after Q2 earnings disappointed investors. Axis Bank, HDFC Bank and Infosys were the top losers on the Nifty 50, and Nifty Private Bank was the worst-performing sector. Axis Bank fell as much as 5%, even though its standalone net profit rose 38% year-on-year in Q2FY27. Motilal Oswal said higher operating expenses led to a slight earnings miss, offsetting strong NII growth and lower-than-expected provisions. HDFC Bank slipped 2% on concerns over pressure on net interest margins and modest earnings growth.
Weak Global Cues
Weak global cues weighed on tech stocks. US stocks ended sharply lower on Friday after renewed selling in AI-related technology names. The Nasdaq Composite dropped 2.19%, the S&P 500 fell 1.22% and the Dow Jones Industrial Average lost 0.55%. Asian markets also fell, with lingering worries about how massive AI investments will be funded hit technology stocks ahead of a busy earnings week. South Korea's Kospi fell more than 3%. At home, IT stocks added to the pressure, with LTM felling nearly 6% after its Q2 consolidated net profit dropped 4.6% year-on-year.
Crude Jitters
Brent crude fell 2.49% to $107.12 a barrel today, down $2.74, but that brought little relief. Oil is still well above where it was earlier last week, after a sharp rally that ended with Brent settling at $109.86 on Friday. High crude prices are a worry for India, which imports most of its oil. They raise the import bill, push up inflation and put pressure on the rupee. With Brent still above $107, investors stayed cautious, and today's dip wasn't enough to lift the market.
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