Sensex slides nearly 500 points as global uncertainty, technical weakness, and investor caution hit markets
MUMBAI — Benchmark indices extended losses on Monday as the Sensex tumbled nearly 500 points and the Nifty slid deeper into negative territory. By 10:53 am, the Sensex traded at 83,123.78, down 452.46 points, while the Nifty stood at 25,556.70, lower by 126.60 points. Selling pressure intensified across sectors as both domestic and global factors weighed heavily on investor sentiment.
First, geopolitical risks and global uncertainty rattled markets. Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said India-specific issues, combined with global tensions, are eroding confidence. Conflicting signals around the US-India trade deal, tensions in Iran, unrest in Venezuela, and comments by former US President Donald Trump on Greenland contributed to risk aversion. The India VIX surged, signaling heightened volatility. Vijayakumar also highlighted that a Supreme Court ruling on Trump-era tariffs remains pending, adding to market caution. Upcoming Q3 earnings from major IT and banking firms, including Reliance Industries, will further shape near-term market direction.
Second, technical weakness reinforced the downward trend. Nifty 50 broke below its previous day’s low early in the session, forming a lower low and signaling short-term bearishness. Analysts pointed out key support levels at 25,444 and 25,140, while immediate support lies near the 100-day exponential moving average zone of 25,600–25,550. Momentum indicators reflected sustained weakness: RSI approached oversold territory, and MACD remained negative. Bank Nifty also struggled below key moving averages, with heavyweight banking stocks showing limited leadership. Analysts warned that a decisive breakdown in support levels could accelerate selling, while resistance remained capped near recent bands.
Third, investors adopted a cautious stance amid mixed global cues and impending earnings. Ponmudi R, CEO of Enrich Money, noted that risk-off positioning dominates portfolios, driven by geopolitical tensions, tariff concerns, and foreign institutional investor outflows. Civil unrest in Iran and potential US military involvement added to apprehension. Investors now focus on upcoming Q3 results from major IT players such as TCS and HCL Technologies to gauge near-term market trends.
Across sessions, foreign outflows and underperformance of heavyweight stocks reflected weak sentiment, although pockets of strength emerged intermittently. Despite technical rebound possibilities, market mood remains subdued. Analysts said volatility is likely to stay elevated until clearer signals emerge on trade policy, geopolitical developments, and corporate earnings.
In conclusion, the Sensex and Nifty face headwinds from three key sources: global uncertainty, technical breakdowns, and cautious investor positioning. Until confidence returns, meaningful upside appears limited, and markets may continue to oscillate under pressure.
