Indian stock markets experienced a major downturn on Monday, with share prices and indices witnessing significant declines. On the Bombay Stock Exchange (BSE), shares of 3,519 companies fell, and 494 of these companies saw their stock prices drop to the lowest levels in the past year. Only 597 companies saw an increase in their share prices. Notably, shares of 710 companies hit the lower circuit breaker limit and were halted.
The Sensex on the BSE dropped by 824.29 points, or 1.08%, closing at 75,366 points. On the National Stock Exchange (NSE), the Nifty index fell by 263 points, or 1.14%, to reach 22,829 points. Additionally, the Nifty Next Fifty index declined by 2.82%, while the Nifty 500 index dropped by 1.91%.
Analysts noted that the sharp decline in the Indian stock market reflects the deep vulnerability of the market. According to Business Line, the technology (IT) sector saw the most significant losses, driven by developments in artificial intelligence (AI). Satish Chandra Aluri, an analyst at Lemon Markets, pointed out that the increasing competition from China’s AI startup DeepSic AI has intensified global reactions in the IT sector, leading to a negative impact on Indian IT stocks.
Among the companies that saw notable declines in their stock prices were HCL Technologies, Tech Mahindra, Wipro, Hindalco, and Shriram Finance. HCL Technologies lost 4.59%, Tech Mahindra dropped 4.18%, Wipro fell 3.78%, Hindalco declined by 3.53%, and Shriram Finance lost 3.22%.
On the other hand, stocks of Britannia, ICICI Bank, Mahindra & Mahindra, Hindustan Unilever, and SBI saw gains. Britannia’s share price rose by 1.5%, ICICI Bank by 1.33%, Mahindra & Mahindra by 1.02%, Hindustan Unilever by 0.97%, and SBI by 0.45%.
