Ahmedabad: Indian equities extended their slide on Monday as crude oil surged past $100 a barrel, intensifying the risk-off sentiment across Dalal Street. Sell-offs have hit mid-and small-caps, and stock traders in Gujarat are reporting acute margin stress as mark-to-market losses erode collateral values.Market participants said brokers have raised vigilance on margin shortfalls and, in several cases, squared off client positions where additional funds were not arranged within stipulated timelines. Traders in Ahmedabad, Surat, Rajkot and Vadodara who rely on margin trading facility (MTF) and pledged share funding are among the most affected, as falling prices reduce the value of pledged securities and MTF-bought holdings simultaneously.The BSE Sensex is down about 7.70% over the past month, with pressure attributed to global cues including an IT-sector sell-off and heightened tensions in the Middle East with the Israel-Iran war. The broader market has seen sharper drawdowns, increasing the frequency of margin calls for leveraged traders.Viral Mehta, west zone head of a stock broking firm said, “Under MTF and pledge-based funding, a decline in the market value of collateral lowers available margin. If clients do not top up cash or provide additional approved securities within the broker’s deadline, positions can be liquidated to restore required margin levels. Brokers may also initiate immediate liquidation when continuous declines push the cash ledger negative, leading to forced selling of pledged holdings.”
