MUMBAI – Friday’s rebound lasted one session. On Monday, the market gave back the gains and then some, with the Nifty falling below 23,800 as IT stocks took the heaviest damage. The Nifty 50 fell 118.55 points, or 0.50%, to 23,779.15, while the Sensex lost 382.62 points, or 0.50%, to close at 76,132.81. Both indices hit their lowest levels in about six weeks.
The selling was much broader than Friday’s session. Fourteen of 16 major sectoral indices ended lower, with Nifty IT falling 2.3%. Infosys dropped 3.81%, while TCS, Wipro and HCL Technologies also declined. Stronger US jobs data increased expectations of a Federal Reserve rate hike, putting additional pressure on technology stocks that depend heavily on American clients.
Crude added another problem. Brent rose to around $96.8 a barrel, keeping pressure on India’s import bill and inflation outlook. Oil has gained about 35% since late February, making the latest market weakness harder to dismiss as ordinary profit-taking.
Foreign investors have also turned sellers again. FPIs sold ₹7,443 crore of Indian equities during the first four trading days of September, after buying about ₹20,200 crore in July and ₹30,919 crore in August. Higher crude, US bond yields and a stronger dollar are now working against the flows that had supported Indian equities during the previous two months.
The broader market showed some resistance. The Nifty Smallcap 100 was almost unchanged, while defence stocks gained ahead of a Defence Acquisition Council meeting.
Bharat Electronics was among the stocks that held up better, showing that Monday’s selling was not a complete exit from equities. The Nifty had already fallen below 24,000 last week. Monday’s close below 23,800 puts the next technical support around 23,500-23,600. A move back above 24,000 would first have to reverse the latest leg of selling.
This is no longer just a one-day correction. Oil near $97, renewed foreign selling and pressure on IT stocks are hitting the market from different directions. Until at least one of those pressures eases, the Nifty has little reason to treat 24,000 as secure ground.
