SBI, ICICI Bank, NTPC, HCL Tech, Reliance, Tata Motors, ITC, Axis Bank, Infosys, L&T, M&M, Maruti Suzuki, UltraTech Cement, and Wipro were the top losers in the Sensex pack. Bajaj Finance, Asian Paints, JSW Steel, and HUL were the top gainers. All indices are closed in red. The auto, PSU bank, financial services, media, energy, private bank, infrastructure, realty, and FMCG indices saw the biggest decline. The Nifty Midcap 100 index fell 946 points or 1.59% to 58,501, and the Nifty Smallcap 100 index fell 244 points or 1.25% to 19,275. The India VIX, which indicates market volatility, rose 7% to 15.21.
According to Santosh Meena, Research Head at Swastika Investment, the market has witnessed a decline from high levels. The main reason for this is the US job data released on Friday night. If the data is weak, it will increase the chances of a recession in the world’s largest economy. Meanwhile, India’s weightage in the MSCI Emerging Market has increased more than China’s. This has increased the risk of a decrease in allocation weightage due to the high valuation of the Indian market.