Indian headline indices fell sharply on Monday riding on a host of triggers, including continued weakness in the banking and financial stocks along with a rout in mid and smallcaps. A rush for profit-taking and mixed trends in global markets were among other prominent factors.

The 30-stock S&P BSE Sensex plunged 670 points to the day’s low of 70,922.57 while the Nifty50 tanked by over 200 points. Sensex finally ended at 71,072.49, down by 523 points or 0.73% while Nifty was down by 166.45 points or 0.76% at 21,616.05.

Here are top 5 factors triggering the debacle:

1) Banks biggest spoilsports

Banks led by private heavyweights ICICI Bank and HDFC Bank dragged the Nifty the most. Nifty Bank was down 1.7% with all 12 stocks ending in the red. In terms of highest fall, Bandhan Bank, Punjab National Bank (PNB) and Bank of Baroda fell between 7.68% and 3.45%.

2) Broader markets’ weakness

Weakness pervaded in broader markets as well with smallcaps particularly at the receiving end of investors’ ire. The Nifty Smallcap 100 index settled with declines of over 4% or 652.25 points at 15,617.05 with just 10 stocks closing in the green in the 100-stock index. The top gainers were Jubilant Ingrevia, Medanta operator Global Health and JBM Auto, which ended with gains of 13%, 6.32% and 4.20%, respectively.Among the top losers were state-run SJVN, which plunged 20%, followed by Amber Enterprises and NBCC down by more than 10%, each.The Nifty Midcap 100 was down 2.48% or by 1,213.25 points and traded at 47,675.80. In the 100-stock index, 81 were in the red led by NHPC (15%), Bharat Forge (14%) and IRFC (13%).

3) PSU Stocks

Among the worst performers on Monday were PSU stocks with selling pressure across the board — be it power, railways, defence or energy stocks. SJVN, NHPC, IRFC, RVNL, IRFC IREDA, PSU, Mazagon Dock, RVNL and Coal India were among the most beaten-down counters.

4) Q3FY24 results

The market lagged enough impetus on the earnings front with the season now at its fag end. Among the companies which announced their earnings post-market hours on Friday and Saturday were Hero MotoCorp, ONGC, MCX, Tata Power, and Yatharth Hospital & Trauma Care Services. Each of these stocks ended in the red.

5) Global Markets

With mainland Chinese markets closed for the week for the Lunar New Year, there was a dearth of market-driving news. Tokyo’s markets also were shut on Monday, for a one-day holiday. Dow 30 futures also traded lacklustre during the day and was hovering near 38,623 at 4 pm India time, down by 48.70 points or 0.13%.

Also Read: Yes Bank shares fall 11% on profit booking post 40% rally. Should you buy, sell or hold?

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