SENSEX, NIFTY50 resume decline after a day's pause on broad-based selling pressure

The Indian equity benchmarks resumed their downward journey on Monday, September 28, after a day's pause in the previous session as investor sentiment, which was already damaged tracking a surge in crude oil and rising bond yields, further took a knock after Maharashtra government declared drought in the state while expectations of a rate cut next month added to worries of investors.

The SENSEX fell as much as 1,180 points and NIFTY50 index touched an intraday low of 22,762 dragged down by weakness in index heavyweights like HDFC Bank, Reliance Industries, ICICI Bank, Larsen & Toubro, State Bank of India, Bharti Airtel and Hindustan Unilever.

The SENSEX ended 1,124 points or 1.52% lower at 72,772 and NIFTY50 index dropped 1.56% or 360 points to 22,780.

Brent crude futures for delivery in November surged nearly 4% to $108.46 per barrel after US President Donald Trump rejected a peace deal from Iran to resolve their conflict and reopen the Strait of Hormuz, keeping tensions in the Middle East elevated.

Iran announced a peace proposal last week at the UN General Assembly in New York, saying it had been transmitted to the Americans via Qatari mediators. Trump said on Saturday he rejected the plan but told Axios in a phone interview on Sunday that he expected US negotiators to engage in more talks this week, according to a report by news agency Reuters.

Yield on 10-year US bond spiked to 5.23%, its highest level in nearly two decades.

NIFTY Bank, Financial Services, Auto, FMCG, Metal, Private Bank, Realty, and Oil & Gas indices also fell between 1.5% and 2%.

Broader markets also faced selling pressure as NIFTY Midcap 100 index dropped 1.63% and NIFTY Smallcap 100 index plunged 1.85%.

Tata Motors PV was top loser in the NIFTY50 index, the stock rose 3% to ₹281.75. Adani Enterprises, Jio Financial Services, Power Grid, Larsen & Toubro, ONGC, Adani Ports, Hindustan Unilever, Tata Consumer Products and Reliance Industries also fell between 2.32% and 2,93%.

On the flip side, Dr Reddy's Labs, Infosys and HDFC Life were notable gainers in the NIFTY50 index.

The overall market breadth was extremely negative as 2,716 shares ended lower while 869 ended higher on the NSE.