Sensex sinks 929 pts, Nifty below 22,900, PSU banks buck trend

The key equity benchmarks extended their losses in afternoon trade. The Nifty 50 slipped below the 22,900 mark, reflecting continued weakness in the domestic market. Selling pressure was broad-based, with all sectoral indices trading in the red except the Nifty PSU Bank index. Weakness in banking shares dragged the benchmark indices lower, while elevated crude oil prices added to investor concerns over inflation and the potential impact on India's import bill.

At 13:30 IST, the S&P BSE Sensex tanked 929.19 points or 1.24% to 73,800.08. The Nifty 50 index declined 277.05 points or 1.2% to 22,869.10.

In the broader market, the BSE 150 MidCap Index declined 0.69% and the BSE 250 SmallCap Index fell 1.06%.

The market breadth was weak. On the BSE, 1,319 shares rose and 2,936 shares fell. A total of 278 shares were unchanged.

Buzzing Segment:

The Nifty PSU Bank index rose 2.37% to 8,286.70, supported by strong quarterly results from some public sector lenders over the weekend.

Punjab National Bank (up 5.06%), Union Bank of India (up 4.96%), Canara Bank (up 3.28%), Bank of Baroda (up 3.20%) and Bank of India (up 2.98%) were the top gainers in the index.

Other gainers included Bank of Maharashtra (up 1.70%), State Bank of India (up 0.77%), Indian Bank (up 0.71%), Central Bank of India (up 0.55%) and Punjab & Sind Bank (up 0.28%).

On the other hand, Indian Overseas Bank fell 0.29%, while UCO Bank declined 0.13%.

Punjab National Bank shares advanced after the lender reported a 12.82% year-on-year (YoY) rise in second-quarter net profit to Rs 5,532.23 crore, from Rs 4,903.73 crore in Q2 FY26. Total income rose 5.44% YoY to Rs 38,185.41 crore from Rs 36,213.62 crore, and 2.56% quarter-on-quarter (QoQ) from Rs 37,230.73 crore. Net interest income (NII) grew 10.82% YoY to Rs 11,601.29 crore from Rs 10,468.80 crore, and 7.44% QoQ from Rs 10,798.36 crore.

Union Bank of India rallied after its standalone net profit rose 30.31% year-on-year to Rs 5,537 crore in Q2 FY27, while net interest income increased 20.09% to Rs 10,583 crore.

Global Markets:

Dow Jones futures were up 93 points, indicating a strong opening in the US stocks.

European equity markets fell on Monday, weighed down by political and social unrest in France and investor caution ahead of a busy week of corporate earnings announcements.

France witnessed widespread protests over the weekend, with thousands of people taking to the streets in major cities over rising living costs, inflation and deteriorating public services. The demonstrations resulted in arrests, property damage and looting, highlighting growing public discontent.

The unrest added to political challenges facing President Emmanuel Macron as France grapples with economic weakness and mounting public debt ahead of the 2027 presidential election.

Asian equity market also traded lower on Monday, as technology stocks came under pressure amid concerns over heavy artificial intelligence (AI) infrastructure spending and rising financing costs. Hong Kong markets remained closed for a holiday.

US stocks ended sharply lower on Friday, 16 October 2026, as technology and semiconductor shares extended their losses. The Dow Jones Industrial Average fell 0.34% to 52,002.41, while the S&P 500 declined 1.09% to 7,659.44. The Nasdaq Composite dropped 2.14% to 26,140.03.

Concerns over the sustainability of AI-related investments, coupled with stronger-than-expected US inflation data, weighed on technology stocks and revived expectations of further interest rate increases by the Federal Reserve.

Meanwhile, crude oil prices eased after US President Donald Trump issued an executive order on 16 October waiving certain sanctions, restrictions and duties under the newly enacted Lindsey O. Graham Sanctioning Russia and Iran Act of 2026. The move followed an agreement concerning Russian diesel exports. However, the order did not remove all existing US sanctions against Russia.

Brent crude futures fell to around $107 a barrel as the easing of restrictions on certain Russian energy exports raised expectations of increased fuel supplies. However, geopolitical uncertainties, including tensions around the Strait of Hormuz, continued to pose risks to the global energy outlook.

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