Indian markets tumble as private banks slide and foreign investors dump shares

Indian equities reversed a two-day rally on Monday, with the Sensex shedding 765 points to finish near 73,964 and the Nifty 50 sliding 224 points to about 22,923. The sell-off was led by the country’s largest private lenders—HDFC Bank, ICICI Bank and Axis Bank—whose combined weight accounted for over half of the index decline, while the private bank index fell 1.7%. Foreign portfolio investors accelerated outflows, reaching a six-month peak in October and contributing to a cumulative ₹52,100 crore sold this month.

Crude oil prices remained high, with Brent above $107 per barrel after supply concerns near the Strait of Hormuz, tightening macro conditions. Geojit Investments’ chief strategist warned that the crude surge could become a strong headwind despite attractive large-cap valuations. Technical analysts noted that the market faces stiff resistance around the 23,250-23,300 level, with limited upside unless broader participation emerges.