Stock market update, global markets:
Indian equity benchmarks remained under pressure in Monday’s trade, weighed down by weak global cues, rising geopolitical tensions, and a fresh round of selling in IT and financial stocks. As of 1:05 PM, the BSE Sensex had dropped 597.50 points ( 0.73 per cent) to 81,810.67, while the Nifty 50 fell 162.80 points (0.65 per cent) to 24,949.60, slipping below the key 25,000 mark.
Key Highlights:
1) The sharp decline in IT stocks followed Accenture’s third consecutive year-on-year drop in outsourcing contracts, which spooked investors and signaled ongoing softness in global tech demand. The Nifty IT index fell over 1 per cent, dragging down broader market sentiment. Banking, financial services, auto, FMCG, and consumer durables also remained weak, with sectoral indices trading 0.5 to 1 per cent lower.
2) Geopolitical tensions further clouded sentiment as crude oil prices surged following US airstrikes on Iran, sparking fresh fears of inflation and the possibility of a delayed rate cut cycle by the US Federal Reserve. Global markets mirrored the risk-off mood, with S&P 500 futures down 0.2 per cent, Euro Stoxx 50 futures falling 0.5 per cent, and Japan’s Topix down 0.4 per cent. However, Hong Kong’s Hang Seng bucked the trend, rising 0.4 per cent.
3) Despite the broader weakness, mid- and small-cap indices staged a recovery. The Nifty Midcap 100 rebounded nearly 1 per cent from its day’s low, while the Nifty Smallcap 100 rose 1.2 per cent, led by strong gains in defence, pharma, and fintech stocks. Among the top movers were Glenmark Pharma, Polycab, and Dixon Technologies, which gained over 3 per cent, while KFin Tech and Zen Tech surged 5 per cent each, hitting upper circuits. Defence stocks including Mazagon Dock, BDL, and Paras Defence climbed as much as 5 per cent on renewed interest following geopolitical developments.
4) In stock-specific action, Ideaforge Technologies jumped 10 per cent after winning a Rs 137 crore UAV order from the Ministry of Defence. Shares of small finance banks such as Ujjivan and ESAF rallied up to 6 per cent after the RBI eased priority sector lending norms, cutting the mandatory lending quota by 15 percentage points.
5) On the IPO front, PhonePe is reportedly eyeing a Rs 1,500 crore public issue, with filing expected by August. HDB Financial Services is commanding a 6.3 per cent grey market premium ahead of its listing, while Kalpataru Projects’ IPO, which opens on Tuesday, is trading at a GMP of Rs 9. With volatility expected to persist, all eyes remain on global market movements, crude trends, and FII flows in the coming sessions.
