Not a very cheerful Monday for the markets. The Indian domestic indices Sensex and Nifty continued to be under pressure, extending losses for a sixth straight session. The Sensex slipped around 600 points to trade near 82,989, while the Nifty moved below the 25,600 mark, hovering around 25,516.
Broader markets see sharper cuts
The selling pressure was more pronounced in the broader market space. The BSE Midcap index was trading lower by about 1.5%, while the BSE Smallcap index was down nearly 1.75%. Among sectoral indices, the Nifty Auto index was trading lower by nearly 2%, while Nifty IT was down around 0.6%. The Nifty Media index slipped over 2%, and the Nifty Pharma index was also trading lower by about 1.2%.
Let’s take a look at the 5 key reasons why the markets are falling today –
1. Global uncertainty and geopolitical concerns
One of the major factors dragging markets today is rising geopolitical tension and global uncertainty. Developments linked to international geopolitics, including tensions across multiple regions and unclear signals from major global powers, have made investors risk-averse. Furthermore, uncertainty around trade-related developments between India and the US has added to caution.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments said, “The market has turned distinctly weak, weighed down by a series of India-specific and global geopolitical events. The drama surrounding the US-India trade deal is getting murkier with strange remarks from the US administration. This is impacting the market. Geopolitical developments in Venezuela, the crisis in Iran and Trump’s threats regarding Greenland are also being viewed by the markets with concern. This has spiked the India volatility index India VIX indicating big volatility ahead.”
2. No certainty on US-India trade deal
The other big overhang for the markets is the continued uncertainty with regards to tariff and the long pending, US-India trade deal. Speaking on its impact, Vijaykumar said, “The market has turned distinctly weak, weighed down by a series of India-specific and global geopolitical events. The drama surrounding the US-India trade deal is getting murkier with strange remarks from the US administration. This is impacting the market.”
3. Volatility Index jumps 6%
The Volatility Index or VIX which is also seen as a measure of Fear in the market is up 6%
4. Crude oil prices inch higher
Rising crude oil prices also added to the cautious mood. Brent crude was trading higher at around $63.39 per barrel during the session. The global uncertainty and rising geopolitical tension has led to a runup in the crude prices.
5. Earnings uncertainty keeps investors cautious
Markets are also awaiting key quarterly earnings announcements, particularly from IT majors Tata Consultancy Services and HCL Technologies later in the day.