SENSEX Surges Over 500 Points Amid Volatile Markets Following Fraud Alert

The Indian stock market experienced significant fluctuations on Sunday, with the S&P BSE SENSEX surging by over 500 points. Concurrently, the National Stock Exchange's (NSE) NIFTY50 index was trading comfortably above the 25,750 mark.

A key development impacting the market was the announcement from IDFC First Bank, which saw its shares plummet by approximately 10%, ending the day at ₹75.16 per share on the NSE. This decline was triggered by the bank's disclosure of a ₹590 crore fraud concerning accounts managed by the Haryana government.

In response to the incident, IDFC First Bank reported that it has informed the banking regulator and has initiated a police complaint. The news raised concerns among investors about the bank's operations and the potential implications for its financial stability.

Analysts note that several factors are contributing to the current market volatility. These include domestic macroeconomic indicators, the expiry of monthly futures and options contracts, and uncertainties stemming from global events. Notably, the increase in tariffs announced by US President Donald Trump could add to existing trade tensions, potentially reverberating through international markets.

Trump's recent imposition of tariffs, which began at 10% and escalated to 15%, follows a ruling by the US Supreme Court that deemed such tariffs illegal, as they exceeded presidential authority under the International Emergency Economic Powers Act of 1977.

On a more positive note, certain sectors proved resilient during this turbulent period. The BSE's PSU Bank index climbed by 1.5% to reach 5,507.38, while the NIFTY PSU Bank index rose 1.36%. Growth was also noted in auto and metal stocks. Conversely, the IT sector faced challenges, with the NIFTY IT index declining by 0.41%, settling at 31,872.35.

Additionally, the BSE 150 MidCap Index rose by 0.23% to 16,122.85, while the BSE SmallCap Select Index experienced a gain of 0.92%, concluding at 7,848.09 points.

Market analysts continue to monitor the developments surrounding global trade policies, fluctuations in crude oil prices, and foreign investor trading activities, all of which are expected to shape market dynamics in the upcoming week.