Indian domestic indices saw a weak trading session on Monday, with selling pressure extending beyond the benchmark indices to the broader market segment.
The Sensex and Nifty ended today’s trading session in the red. On a similar note, the decline was also visible in mid-cap and small-cap stocks, which are generally more sensitive to changes in investor sentiment.
The Nifty Smallcap 100 index dropped around 1.9%, while the Nifty Midcap 100 index declined nearly 1.4%. The BSE MidCap index ended the session down 1.56%, while the BSE SmallCap index closed 2% lower.
Let’s take a look at the key reasons why the indices plunged today –
Broader market faces strong selling pressure
Unlike large-cap stocks, midcap and smallcap shares often witness sharper movements when investors turn cautious.
In the mid-cap space, stocks such as Power Grid Corporation of India, SAIL, Ashok Leyland and Groww-related counters were among the notable laggards.
On the other side, in the small-cap segment, stocks including Netweb Technologies India, IFCI, Ola Electric Mobility and HSCL saw significant declines.
Global market rout sets the tone
One of the key reasons behind the weakness in Indian equities was the sharp correction across global markets.
Asian markets started the week on a weak note after heavy selling in technology stocks triggered panic across the region. South Korea’s Kospi index plunged around 9% during morning trade, forcing authorities to temporarily halt trading through a circuit breaker mechanism. Japan’s Nikkei also saw a steep decline, while markets in Hong Kong and China traded lower.
Wall Street selloff adds to concerns
The technology-heavy Nasdaq index recorded its steepest single-day decline since April 2025 after stronger-than-expected employment data raised concerns that the US Federal Reserve may keep interest rates elevated for longer than expected.
Middle East tension trigger risk aversion
Another key factor weighing on markets is the ongoing geopolitical tension in West Asia.
With the latest development, military action between Israel and Iran increased uncertainty among global investors. The situation has also further raised fears of disruptions to energy supplies, particularly through the Strait of Hormuz.
Rising oil prices
Crude oil prices surged sharply amid fears that prolonged geopolitical tension could impact global supply chains.
Brent crude climbed close to $97 per barrel, while West Texas Intermediate crude traded near $94 per barrel.
Domestic market shows signs of resilience
“Global equity markets witnessed a sharp correction, leading to a gap-down opening in Indian equities amid escalating geopolitical tensions in West Asia and significant selling pressure in AI-linked heavyweight stocks. However, the domestic market has shown resilience post the weak start, with the Nifty recovering steadily from lower levels, supported by buying interest in the Pharma and IT sectors,” said Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities.
