The Indian stock market started the week on a low note, with benchmark indices closing lower on Monday, owing primarily to profit booking at higher levels.The Sensex ended at 82,059.42, down 271.17 points, or 0.33 percent. Additionally, the Nifty ended the day lower, dropping 74.35 points, or 0.30 percent, to 24,944.85.
Key Highlights:
Sensex and Nifty ended lower as investors engaged in profit booking after recent gains.
Widespread selling across sectors contributed to the indices closing in the red.
"Technically, the index appears to be in a consolidation phase, which could last for the next few days. The index may remain under pressure unless it reclaims the 25,000 level, according to LKP Securities' Rupak De.
"On the downside, the Nifty could drift to 24,800-24,750. A deeper correction is possible if it falls below 24,750. In contrast, a move above 25,000 could spark a rally toward the 25,250-25,350 level," he added.
Several major stocks fell on the 30-share index, including Infosys (-1.95%) and Tata Consultancy Services (-1.20%). Tech Mahindra dropped 1.19 percent, while Asian Paints fell nearly 1%. Eternal (formerly Zomato) also fell about 3% during the intraday session.
Power Grid Corporation was the biggest gainer, rising 1.27 percent, followed by Bajaj Finance, which increased 0.91 percent. NTPC gained 0.64 percent, State Bank of India (SBI) gained 0.32 percent, and HDFC Bank ended slightly higher with a 0.17 percent gain.
The larger markets remained stable despite selling pressure on large-cap stocks. While the Nifty Midcap100 index increased by 0.07%, the Nifty Smallcap100 index increased by 0.51%. This implies that investors showed interest in a few small and mid-sized businesses despite the decline in frontline stocks.
The PSU Bank and Nifty Realty indices beat the other sectoral indices, gaining 1.5% and 2.25 percent, respectively. The other sectors that closed in the green were the Bank Nifty, Auto, Financial Services, Metal, Pharma, and Healthcare sectors, all of which showed buying interest in specific segments.
IT, FMCG, Media, Consumer Durables, and Oil and Gas, on the other hand, all saw negative results at the end of the day, with the Nifty IT index dropping the most, 1.37 percent. The market became more volatile. The India VIX, sometimes referred to as the fear gauge, closed at 17.36 after rising 4.89 percent.
Although worries about trade tariffs and Middle East geopolitical tensions are likely to keep the bullion price supported, gold prices started the week on a positive note as safe-have bids increased following Moody's downgrade of the US sovereign credit rating to AA1 from AAA. Pranav Mer of JM Financial Services Ltd. stated, "This week's focus will be on US PMI data for manufacturing and services, as well as housing data."
