The Indian market was off to a weak start as it opened after four days long weekend on Monday. Benchmarks slipped nearly 2% in the opening trade as Nifty opened below 17,200 and the Sensex tanked more than 1000 points. Around 10 am, Nifty midcap and small cap indices were trading lower by nearly 1% as India Volatility Index (India VIX) shot up near 20-mark.   

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The 12-share Bank Nifty fell more than 600 points to trade around 36,800.  Sectorally, Nifty FMCG traded flat, while metal stocks saw some buying interest. Banking, financial services and realty stocks were the worst hit as all other indices turned negative in the opening trade.    

As the domestic stock market kicked off the fresh session on a wrong footing, here are the factors that spooked the market on Monday.   

1. Q4 earnings    

Private lender HDFC Bank and IT major Infosys results fail to cheer market sentiments as the q4 earnings of the heavyweights were lower than expected. HDFC Bank Ltd reported weak net interest margin (NIM) and lower-than-expected net interest income (NII) growth.   

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Motilal Oswal Financial Services lowered FY23 and FY24 EPS estimate of HDFC Bank by 5 per cent on slower growth and margin pressure,however, However, it viewed Infosys as a key beneficiary of an acceleration in IT spending.   

"Infosys results came worse-than-expected with rising attrition weakening margins even though growth prospects appear bright. IT valuations may come under pressure dragging the index down," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. 

2. Russia-Ukraine War 

Russia-Ukraine tension deepened on Monday Ukrainian soldiers resisted a Russian ultimatum to lay down arms on Sunday in the pulverised port of Mariupol, which Moscow said its forces had almost completely seized in what would be its biggest prize of the nearly two-month war. 

3. FIIs selling 

Foreign investors pulled over Rs 4,500 crore from the Indian equity market last week on fears of an aggressive rate hike by US Federal Reserve. This comes following a net investment of Rs 7,707 crore by foreign portfolio investors (FPIs) during April 1-8 as a correction in the markets provided a good buying opportunity, data with depositories showed. 

4. Oil Prices 

Oil prices rose on Monday as concerns grew about tighter global supply, with the deepening crisis in Ukraine raising the prospect of heavier sanctions by the West on top exporter Russia. 
Brent futures were up $1.50, or 1.3%, at $113.20 a barrel at 0030 GMT, and U.S. West Texas Intermediate futures rose 98 cents, or 0.9%, to $107.93 a barrel, reported Reuters.  

5. Global Markets 

Indian markets took cues from Asian markets which traded negative on Monday as Nikkei 225 was down nearly 2% and Chinese Shanghai Composite lost nearly 1% around 10.15 am today. Besides SGX Nifty Futures declined more than 100 points around the same time on Monday, while all major Wall Street indices too settled in the red on Friday