Sensex tumbles for 6th day, investors poorer by Rs 8.9L cr

Led by sell-off across sectors, benchmark equity indices settled in the red on Monday. Falling for the sixth consecutive session, the BSE Sensex tumbled 638.45 points or 0.78 per cent to settle at 81,050. During the day, it plummeted 962.39 points or 1.17 per cent to 80,726.06. The NSE Nifty slumped 218.85 points or 0.87 per cent to end at 24,795.75. Investors became poorer by Rs 8.90 lakh crore.

During the intraday trade, the BSE Sensex crashed up to 962 points or 1.17 per cent to 80,726.06, while NSE’s Nifty50 fell 244 points or 0.97 per cent to 24,770.

According to analysts, together, the profit booking, Foreign Institutional Investors’ (FIIs) sell-offs and geopolitical risks have created a complex environment, clouding the outlook for market performance and contributing to a more cautious approach among investors.

“The markets have been experiencing significant profit booking recently, alongside a large sell-off by FIIs. This trend, which has been ongoing for the past week, has unsettled investor sentiment, creating a more cautious and risk-averse atmosphere. Investors, having seen gains in the recent past, are now looking to lock in profits, further contributing to the downward pressure on market indices,” Narendra Solanki, head, Fundamental Research - Investment Services, Anand Rathi Shares and Stock Brokers, said.

“In addition to the internal market dynamics, geopolitical concerns are also playing a role in shaping short-term market direction. The escalating tensions between Iran and Israel have introduced a level of uncertainty and risk that investors find difficult to ignore,” he added.

Any potential military conflict in the region could disrupt global oil supplies and increase volatility in energy markets, which in turn impacts broader financial markets. This uncertainty adds to the already fragile investor sentiment.