The markets closed lower on Monday, with the Sensex and Nifty experiencing a range-bound trading session marked by cautious investor sentiment. The Sensex closed at 81,508.46, down 200.66 points or 0.25 per cent, while Nifty settled at 24,619.00, losing 58.80 points or 0.24 per cent.
The day’s trading was influenced by multiple factors, including rising oil prices, geopolitical tensions in West Asia and anticipation of the release of key economic data. The Reserve Bank of India’s (RBI) monetary policy announcement, which maintained the status quo on repo rate (6.5 per cent) but reduced the cash reserve ratio (CRR) by 50 basis points, added complexity to the market’s mood.
Market breadth remained relatively neutral, with 2,296 advances and 1,774 declines on the BSE. A total of 286 stocks hit their 52-week highs, while 20 touched 52-week lows. Notably, 523 stocks were in the upper circuit and 214 in the lower circuit.
Sector-wise gain and loss
Sector performance was mixed, with metal and IT stocks showing gains, while FMCG and media sectors experienced significant decline. Textiles stocks rallied impressively, with companies like Gokaldas Exports, Welspun Living and Trident surging 5-10 per cent due to challenges faced by Bangladesh’s garment industry.
Top gainers on the NSE included Wipro (2.67 per cent), Larsen & Toubro (2.28 per cent), SBI Life (1.33 per cent), Tata Steel (0.95 per cent), and BPCL (0.90 per cent). Conversely, top losers were Tata Consumer (-4.13 per cent), Hindustan Unilever (-3.29 per cent), Tata Motors (-2.09 per cent), Nestlé India (-1.71 per cent), and Asian Paints (-1.51 per cent).
Vinod Nair, Head of Research at Geojit Financial Services, commented, “The domestic market exhibited a range-bound trade after last week’s rally. The rise in oil prices amid tensions in the Middle East, along with investors’ caution ahead of key economic data like India & US CPI data and ECB policy this week, impacted the sentiment.”
Gaurav Garg from Lemonn Markets Desk noted the market’s dynamic trading environment, highlighting that “markets exhibited a mild downward pressure during Monday’s mid-day session… The market mood was influenced by the RBI’s monetary policy decisions.”
Optimistic outlook
The RBI’s decision to reduce the CRR is expected to inject ₹1.16 lakh crore into the financial system, potentially benefiting banking and infrastructure sectors. Investors are now closely watching global trends and upcoming economic data, including Consumer Price Index (CPI) figures and potential European Central Bank policy updates.
Ajit Mishra from Religare Broking provided insights, stating, “A pause in the index following the recent recovery is a healthy sign, providing an opportunity to accumulate quality stocks on dips.”
Technical analysts suggest that the Nifty is preparing to surpass crucial levels. Nagaraj Shetti from HDFC Securities indicated potential upside, noting “a decisive move above the hurdle of 24,250 could not only confirm the higher bottom reversal pattern… but also signal important trend reversal in Nifty on the upside.”
As the trading week begins, investors remain cautious, with attention focused on upcoming economic indicators and global market trends that could influence India’s financial landscape.
