Indian equity markets experienced volatility on Monday, with benchmark indices BSE Sensex and Nifty 50 fluctuating between minor gains and losses. , Markets, Times Now

Why Is the Stock Market Volatile Today? Key Reasons Behind Sensex-Nifty Movement

Indian equity markets witnessed a volatile session on Monday, with benchmark indices BSE Sensex and Nifty 50 opening on a cautious note and oscillating between gains and losses throughout the day. The markets began the session marginally higher, reflecting mixed cues from global markets. The Sensex opened about 50 points higher, while the Nifty also started the day in the green. However, early optimism faded quickly as both indices slipped into the red within the first hour of trading. Although markets briefly recovered around mid-morning, selling pressure returned by early afternoon, keeping overall sentiment fragile.

As of 2:00 pm, the Nifty 50 was trading 0.08% lower at 23,134.10, while the Sensex was nearly flat at 74,558.47, down just 0.01%. The choppy movement reflected cautious investor sentiment amid persistent global risks.

Global Tensions Keep Investors on Edge

The primary factor weighing on market sentiment remains escalating geopolitical tensions involving the Iran, Israel, and the United States. The ongoing conflict in West Asia has heightened concerns about disruptions to global energy supply chains.

Even though the administration of Donald Trump has assured safe transit for ships through the Strait of Hormuz, investors remain wary about the potential impact of the conflict on oil flows and global trade.

The geopolitical uncertainty has pushed energy prices higher, adding to inflation concerns worldwide.

Crude Oil Surge Adds to Market Pressure

Crude oil prices extended gains on Monday as investors monitored risks to oil facilities in the Middle East.

Global benchmark Brent Crude rose to around $105.87 per barrel, climbing nearly 2.7% during the session. Meanwhile, West Texas Intermediate traded near $100.36 per barrel.

For India, which imports the majority of its crude oil requirements, higher energy prices raise concerns about inflation, fiscal pressures, and the current account deficit. These macroeconomic risks often translate into cautious investor behaviour in equity markets.

Heavy FII Selling Weighs on Sentiment

Foreign institutional investors continued to exert pressure on Indian equities. On Friday alone, FIIs sold Rs 10,716 crore worth of stocks, taking total outflows for the month to Rs 56,883 crore.

Persistent foreign selling has been a major factor behind the recent volatility in Indian markets, particularly as global investors shift capital toward safer assets amid rising geopolitical tensions.

Rupee Remains Under Pressure

Currency markets also reflected the cautious sentiment. The Indian Rupee opened at 92.43 per US dollar, nearly unchanged from its previous close of 92.4550.

During the session, the rupee briefly weakened to 92.48 per dollar, before recovering slightly to 92.40, gaining about 8 paise from the day’s low.

The currency remains near record lows, pressured by rising oil prices, strong demand for the dollar, and ongoing foreign capital outflows.

Key Factors Influencing Markets Today

Several macro and global factors are currently shaping market sentiment:

FII outflows: Rs 56,883 crore sold so far this month

Crude oil prices: Above $103 per barrel, a four-year high

US Dollar strength: Dollar Index above 100, a four-month high

Geopolitical risks: Escalating US-Iran tensions

Central bank outlook: Investors awaiting the Federal Reserve interest rate decision on March 18

Currency pressure: Rupee trading near record lows above Rs 92 per dollar

Corporate Developments Impact Markets

In corporate news, PhonePe announced it has temporarily deferred its IPO plans due to geopolitical uncertainty and volatility in global markets. The company said it will revisit its listing once stability returns to capital markets.

Meanwhile, commodity markets also saw sharp movements. Silver futures fell by Rs 4,232 to Rs 2.55 lakh per kilogram, pressured by weak domestic demand and a stronger US dollar.

Most Actively Traded Stocks

Several stocks witnessed high trading volumes during the session. Among the most actively traded were:

Vodafone Idea

IDBI Bank

Yes Bank

Suzlon Energy

Adani Power

Tejas Networks

Exchange-traded funds tracking precious metals, including Tata Gold ETF and Nippon India Gold BEES, also saw significant trading activity amid the global uncertainty.

Technical Outlook

Market experts say technical indicators suggest the market may be approaching oversold territory.

According to Sachin Janardan Sarvade, the Nifty has formed a hammer candlestick pattern on the hourly chart, signalling potential exhaustion of selling pressure.

He noted that the Relative Strength Index (RSI) is showing positive divergence, indicating a possible short-term bounce if key support levels hold.

Key levels to watch:

Support: Around 22,950

Resistance: Around 23,500

Next upside target: Near 23,900

Despite occasional intraday recoveries, the broader market mood remains cautious. Investors are closely monitoring developments in the Middle East conflict, crude oil prices, and the upcoming US Federal Reserve policy decision.

Until there is greater clarity on global risks and capital flows, analysts expect Indian markets to remain volatile with sharp intraday swings in the coming sessions.

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