Equity markets continued their downward trajectory for the seventh consecutive session on Monday, with the benchmark BSE Sensex falling 241.30 points or 0.31 per cent to close at 77,339.01, while the broader NSE Nifty declined 78.90 points or 0.34 per cent to end at 23,453.80.
The market opened on a positive note, with Sensex starting at 77,863.54 and Nifty at 23,605.30, but selling pressure at higher levels erased early gains. The IT sector bore the brunt of the selling, with the sectoral index shedding over 2 per cent.
Among major losers, TCS dropped 3.11 per cent, followed by Dr Reddy’s Laboratories (-2.75 per cent), Infosys (-2.65 per cent), BPCL (-2.62 per cent), and Cipla (-2.38 per cent). On the gaining side, Hindalco led with a 3.79 per cent rise, followed by Hero MotoCorp (2.69 per cent), Tata Steel (2.33 per cent), Nestle India (1.47 per cent), and Hindustan Unilever (1.46 per cent).
“Consolidation continued in the market; a slowdown in earnings growth and a weak rupee due to inflation impacted the sentiment. IT stocks reacted negatively today due to a reduced expectation of a FED rate cut in December, which may pose a delay in spending in the BFSI segment,” said Vinod Nair, Head of Research, Geojit Financial Services.
The broader market showed mixed performance, with 1,611 stocks advancing and 2,486 declining on the BSE. The session saw 166 stocks reaching 52-week highs, while 192 touched 52-week lows. The volatility index, India VIX, rose by 3.52 per cent to 15.30, indicating increased market uncertainty.
Sector-wise, the metal index outperformed with a gain of over 1.80 per cent, while the IT index lost more than 2 per cent. The Nifty Bank showed resilience, gaining 184.25 points or 0.37 per cent to close at 50,363.80.
Addressing investor concerns, Pranay Aggarwal, CEO of Stoxkart, emphasized the strong fundamentals: “The projected growth rate for FY 2025 and 2026 is 7.2 per cent and 7.1 per cent by RBI. In September, the NSE market cap to GDP ratio reached 150 per cent – the highest in 20 years. The demand for Indian goods domestically and internationally is swelling, as indicated by the October PMI of 57.5.”
Key support levels
Technical analysts noted key support levels. “Support for Nifty is now seen at 23,350 and 23,200. On the higher side, the immediate resistance zone for Nifty is at 23,600-650 levels and the next resistance is at around 23,800 Mark,” said Tejas Shah of JM Financial & BlinkX.
The market’s recent decline has been attributed to multiple factors. “While Indian equity markets are seeing fund outflows for more than a month now, surging US bond yields and local earnings failing to meet the estimates has been causing uncertainty amongst the investors,” explained Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.
Among other indices, the NIFTY NEXT 50 gained marginally by 0.09 per cent to close at 67,472.00, while the NIFTY MIDCAP SELECT saw a slight decline of 0.07 per cent to end at 12,091.60. The financial services sector showed some strength, with the NIFTY FINANCIAL SERVICES index rising 0.25 per cent to close at 23,257.70.
Circuit filters were triggered for numerous stocks, with 367 hitting the upper circuit and 447 touching the lower circuit during the session.
