Markets tumble as Nifty slips below 22,350, Sensex crashes over 1,600 points

Indian equity markets closed sharply lower on Monday as a steep fall in the rupee to record lows compounded weak global cues and triggered broad-based selling across sectors. The Sensex plunged 1,635. 67 points, or 2. 22 per cent, to end at 71,947.

55, while the Nifty 50 declined 488. 20 points, or 2. 14 per cent, to settle at 22,331. 40, marking one of the sharpest single-day declines in recent sessions.

The downturn coincided with heightened pressure on the Indian currency, which slipped to an all-time intraday low of 95. 12 against the US dollar before recovering marginally to close at a record low of 94. 83, slightly weaker than Friday’s close of 94. 81.

The sharp depreciation in the rupee weighed heavily on investor sentiment, raising concerns over imported inflation and external vulnerabilities, particularly amid elevated crude oil prices and continued foreign fund outflows.

Selling was widespread, with metal stocks leading the losses as fears over global demand and commodity price volatility intensified.

Financial stocks also remained under pressure, dragging the broader indices lower, while weakness extended across midcap and smallcap segments, reflecting a risk-off mood in the market. A few stocks, however, offered some resistance to the broader selloff.

AIA Engineering, Thermax, and EPL managed to post gains of over 3 per cent each, supported by stock-specific factors and relatively defensive positioning, though these advances did little to offset the overall market weakness.

Market participants attributed the decline to a combination of factors, including persistent foreign institutional investor outflows, the sharp fall in the rupee toward the 95 mark, rising crude oil prices, and prevailing global uncertainties.