The Indian equity markets continued their downward trend on Monday, with both the BSE Sensex and NSE Nifty recording significant losses. The Sensex fell by 608.76 points, while the Nifty declined by 205.95 points. This downward movement was attributed to weak opening levels and persistent selling pressure in the market.
The broader market also witnessed deep cuts, with indices like the Nifty Next 50 and Nifty Midcap Select recording losses of 2.52% and 2.34% respectively. The market breadth was significantly negative, with a higher number of stocks declining compared to those advancing.
Banking and financial services stocks showed weakness, with both the Nifty Bank and Nifty Financial Services indices down by 0.92%. However, select private banks like IndusInd Bank and Axis Bank managed to buck the trend and register gains.
On the other hand, information technology stocks showed relative resilience, with companies like TCS and Infosys recording gains. Retail major Trent led the losses, while other companies like Adani Enterprises, Apollo Hospitals, Wipro, and BPCL also witnessed declines.
Technical indicators suggested increased bearish sentiment in the market, with a higher number of stocks hitting their lower circuit. The ongoing concerns over surging crude oil prices and strong US jobs data dampening hopes for early rate cuts have added to the cautious sentiment in the market.
Market participants are now closely watching the domestic Consumer Price Index (CPI) data and HCL Technologies’ quarterly results for further direction. The listing of Standard Glass Lining Tech is also on investors’ radar.
Overall, the market’s weakness can be attributed to a combination of external factors and internal developments. Investors are advised to stay cautious and keep a close watch on market developments to make informed decisions.
