Sensex Falls Sharply, Logs Steep Monthly Drop

India’s BSE Sensex fell further to close about 2.2% lower at 71,947.6 on Monday, the lowest January 2024, extending last week's decline, amid persistent risk-off sentiment. Ongoing Middle East tensions and rising oil prices fuel fears of escalation as the Houthis join the conflict and the US deploys more troops. Losses were widespread, led by financials, after the central bank imposed stricter limits on onshore forex positions to protect the battered rupee. ICICI Bank, HDFC Bank, Kotak Mahindra Bank, Axis Bank, State Bank of India and Bajaj Finance fell in the range of 2-5.1%. Among other laggards, Maruti Suzuki, Mahindra & Mahindra, Asian Paints, L&T, UltraTech Cement, Titan Company and Bharti Airtel fell up to 2.9%. The index slipped over 11% in March, marking its steepest monthly drop since March 2020, weighed by soaring crude oil prices and sustained foreign outflows. The Indian equity markets will be closed on Tuesday, March 31, in observance of Shri Mahavir Jayanti.

The SENSEX Index decreased -1499 points or 2.04 percent on Monday to close at 72084 points. The decline was led by Bajaj Finance (-4.95%), Indusind Bank (-4.86%) and Kotak Mahindra Bank (-3.59%).

India’s BSE Sensex fell around 1.1% to 72,775 on Monday, extending the previous session’s sharp sell-off and marking its lowest level since March 23, as the Middle East conflict continued to drive sentiment. Oil prices surged above $115 per barrel, raising concerns over inflation, higher import costs, and a potential global recession, while foreign outflows from Indian equities persisted, reaching $12.3 billion in March. The index is down about 10.1% this month, on track for its worst monthly performance in six years. Investors also remained cautious ahead of February year-on-year industrial and manufacturing production data due later in the day, after both eased to 4.8% in January from 8% in December. Most sectors traded in the red, with financials, consumer, communication, and miscellaneous stocks posting the steepest decline. Top laggards included Tata Motors (-6%), Billionbrains Garage (-4.7%), Axis Bank (-3.6%), Bharti Airtel (-1.7%), ICICI Bank (-1.7%), and HDFC Bank (-1.4%).