Indian stock markets opened with a cautious tone on Monday, reflecting mixed global signals and recent policy developments by the Reserve Bank of India (RBI). The Sensex and Nifty experienced a marginal decline, with investors closely monitoring domestic and international economic indicators.
The benchmark indices started the day under pressure, with the Sensex opening at 81,602.58 and subsequently sliding to 81,583.57, down 125.55 points or 0.15 per cent. Similarly, the Nifty opened at 24,677.80 and dropped to 24,644.70, losing 33.10 points or 0.13 per cent.
The RBI’s recent monetary policy decisions played a crucial role in market sentiment. While maintaining the repo rate at 6.5 per cent, the central bank implemented a significant 50 basis points cut in the Cash Reserve Ratio (CRR), injecting approximately ₹1.16 lakh crore into the banking system. “The CRR cut is expected to positively impact sectors such as banks, NBFCs, real estate, auto, consumer durables, and infrastructure,” noted Vikas Jain, Head of Research at Reliance Securities.
Global markets provided a mixed backdrop. U.S. stocks closed at record highs following a robust jobs report, with the S&P 500 and Nasdaq achieving fresh peaks. The November employment data showed nonfarm payrolls increasing by 227,000, surpassing expectations and reinforcing potential Federal Reserve rate cut predictions.
Sector-specific movements were pronounced. Banking and financial stocks showed resilience, with SBI Life climbing 0.90 per cent and Kotak Bank rising 0.79 per cent. Infrastructure major Larsen & Toubro led the gainers, posting a 1.96 per cent increase. Technology stocks like Tech Mahindra (0.68 per cent) and Wipro (0.62 per cent) also demonstrated positive momentum.
Conversely, consumer-focused stocks faced significant pressure. Hindustan Unilever experienced the steepest decline at -3.83 per cent, followed by Tata Consumer at -2.88 per cent and Britannia at -2.21 per cent. Nestlé India and Asian Paints also witnessed downward movements.
Foreign institutional investors (FIIs) continued to influence market dynamics. “The return of FIIs is another positive which augurs well for the largecaps,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. However, he cautioned about the rally’s sustainability, noting that “the slowing Indian economy will constrain the bulls.”
Technical analysts provided nuanced perspectives. Ameya Ranadive from StoxBox highlighted that “despite reclaiming a pivotal resistance level, the extended nature of broader indices and mild overbought conditions indicate a potential modest pullback or consolidation phase.”
Looking ahead, market participants are preparing for crucial economic data releases. “Major global data to be released this week includes CPI data from the U.S., Europe, India, Japan, and the ECB meeting for interest rate decisions,” explained Vikas Jain.
Key support and resistance levels remain critical. Hardik Matalia from Choice Broking suggested that “traders should adopt a buy-on-dips strategy as long as the index remains above 24,200, with a strict stop-loss at 24,000 on a closing basis.”
The market’s trajectory will likely be influenced by upcoming economic indicators, global market movements, and potential policy signals from central banks worldwide.
