The Indian stock market began the new week on a grim note, weighed down by fresh concerns in the technology and banking sectors. On Monday, the Sensex fell 572 points to close at 80,891.02, while the Nifty dropped 156 points to settle at 24,680.90. This marks the third straight session of losses for the benchmark indices, which have now fallen nearly 2.2 percent over the last three trading days.
The most significant drag came from the announcement by Tata Consultancy Services that it would reduce its global workforce by two percent. This translates to approximately 12,260 job cuts over the coming year. The restructuring is being positioned as a strategic move to create a more agile and future-ready organisation. However, the news has unsettled investor sentiment. TCS shares fell nearly 1.6 percent on Monday, and the ripple effect was felt across the broader IT sector. Wipro, HCL Technologies, and LTIMindtree all recorded losses for the day, further adding to the downward momentum.
At the same time, the banking sector faced its own share of troubles. Kotak Mahindra Bank reported a disappointing quarterly result, with its net profit plunging over 47 percent compared to the same quarter last year. The stock reacted sharply, falling more than 7.5 percent and marking its steepest single-day drop in over a year. The bank's market value eroded by more than ₹31,000 crore in a single session, making it the biggest loser on both the Sensex and Nifty 50.
Other major banks were not spared. IndusInd Bank, Union Bank, Indian Overseas Bank, Bank of India, and Bandhan Bank all recorded declines, reflecting broader weakness across the sector. The Nifty Private Bank index closed 1.65 percent lower, while the PSU Bank index slipped by 1.2 percent.
As concerns deepened, market volatility spiked. The India VIX index, which measures expected short-term volatility, rose sharply by 7 percent to 12.06. A rising VIX is typically seen as a signal of increasing nervousness among investors.
The selling pressure was not limited to large-cap stocks. The BSE Midcap and Smallcap indices also ended the day in the red, down 0.73 percent and 1.31 percent respectively. Out of 3,000 stocks traded on the BSE, nearly 2,900 ended in the negative, underlining the broad-based nature of the decline. The combined result was a staggering erosion of investor wealth to the tune of ₹3.8 lakh crore in just one day, adding to the ₹12.5 lakh crore wiped out over the last three sessions.
While IT and banking were the primary laggards, other sectors also contributed to the market's weakness. Realty, telecom, capital goods, and industrials all saw significant declines, some losing over 4 percent in value. Only select FMCG and pharmaceutical stocks showed any resilience, offering limited support to an otherwise weak market.
Despite the selloff, domestic institutional investors continued to buy into the weakness. They purchased equities worth ₹6,764 crore according to provisional data. On the other hand, foreign investors remained net sellers, offloading stocks worth ₹6,082 crore, indicating persistent caution among global investors.
The mood in Dalal Street has clearly shifted to caution, with concerns around job cuts in major companies and weakening corporate earnings taking centre stage. As volatility rises and foreign selling persists, markets may continue to remain under pressure in the near term.
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