Indian stocks experienced a significant decline on Monday, despite notable gains in metal stocks following China's weekend announcement of various economic stimulus measures.
Market sentiment was cautious due to escalating tensions in the Middle East. On Sunday, Israel intensified its military actions against Hezbollah in Lebanon, targeting multiple sites after the assassination of the group's leader, Sayyed Hassan Nasrallah.
Concerns are mounting that Israel's increased military activities against Hezbollah and the Houthis in Yemen could push the region closer to a broader conflict, potentially involving Iran and the United States.
Additionally, there are concerns that a potential increase in Yen interest rates could reduce cross-border equity investments.
The benchmark S&P BSE Sensex plunged 1,272.07 points, or 1.49%, to close at 84,299.78. Meanwhile, the broader NSE Nifty index dropped 368.10 points, or 1.41%, to settle at 25,810.85.
In the Nifty pack, BEL, Reliance Industries, Trent, Axis Bank, and Hero MotoCorp fell between 3-4%, while JSW Steel led the gainers’ list, closing nearly 3% higher.
Moreover, Tata Steel, Britannia Industries, Hindalco, and NTPC all saw gains of approximately 1%.
