Stock markets took a hit on Monday as concerns over global trade tensions overshadowed a brief recovery rally. The benchmark Sensex closed down 217.41 points or 0.29 per cent at 74,115.17, while the Nifty 50 ended 92.20 points or 0.41 per cent lower at 22,460.30.
The day started on a positive note, with Nifty hitting an intraday high of 22,676 before facing resistance at the 20-day Exponential Moving Average. However, selling pressure increased in the second half of trading, pushing the market lower amidst renewed worries about global trade tensions and weak cues from Asian markets.
Power Grid emerged as the top gainer on the NSE, rising 3.02 per cent, followed by Hindustan Unilever, Infosys, Nestle India, and ITC. On the flip side, ONGC led the losers, followed by Trent, IndusInd Bank, Bajaj Auto, and Eicher Motors.
Analysts noted that global headwinds continue to impact market sentiment, with uncertainty around US unemployment rates and tariffs contributing to volatility. Broader markets underperformed, with the Nifty Midcap 100 and Nifty Smallcap 100 indices falling significantly.
Sectoral performance was mostly negative, with only FMCG managing to stay in positive territory. IndusInd Bank shares took a hit after the RBI granted its CEO a shorter extension than expected.
Technical analysts observed a breach of key support levels, signaling potential weakness ahead. The volatility index, India VIX, rose, indicating increasing market uncertainty.
The Indian rupee also weakened against the US dollar, adding to investor concerns. Looking ahead, investors are keeping an eye on upcoming economic indicators that could influence market direction.
In conclusion, analysts recommend maintaining a cautious stance and watching for opportunities to buy near support levels and book profits around resistance zones. Market participants are advised to be wary of mixed global cues and the underperformance of the banking index.
