India’s benchmark indices declined on Monday as investors engaged in profit booking. The Sensex fell by 73.48 points, closing at 81,151.27, while the Nifty dropped 72.95 points to settle at 24,781.10.
Of the companies listed on the Nifty, only 12 recorded gains, while 37 stocks closed in the red.
Leading the gainers were Bajaj Auto, HDFC Bank, Asian Paints, Mahindra & Mahindra (M&M), and Eicher Motors. Conversely, Tata Consumer Products, Kotak Bank, Bajaj Finserv, Bharat Petroleum Corporation Limited (BPCL), and IndusInd Bank were among the biggest losers of the day.
Commenting on the market trend, V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, “With the US markets setting new record highs, the global stock market rally appears intact. The steady decline in crude and stability in the US bond yields impart resilience to the stock market despite the lingering tensions in the Middle East.”
“The hope raised by the Chinese stimulus and the cheap valuations of Chinese stocks have the potential to sustain the ‘Sell India, Buy China’ tactical trade for some more time. This presents an opportunity for medium to long-term investors. Of the total FII AUM of $930 billion about 28% is financials which are facing the brunt of FII selling. The sustained FII selling has rendered the valuations of financials attractive in an otherwise overvalued market,” he added.
Looking ahead, all eyes are on Hyundai India’s market debut on Tuesday, following a modestly oversubscribed IPO last week. Investors are also anticipating the Reserve Bank of India’s monetary policy meeting minutes scheduled for Wednesday, along with the HSBC Manufacturing, Services, and Composite PMI data set to be released on Thursday, which are expected to provide fresh cues for the market.
Shriram Subramanian, Founder and Managing Director of InGovern Research Services, said, “Markets are caught in indecision as bulls and bears battle it out. Mixed bag results from some index stock companies. HDFC Bank results were positive. The Hyundai listing on Tuesday will be keenly watched.”
As market participants navigate mixed signals from corporate earnings and global developments, the upcoming events are expected to provide crucial insights that could influence future market direction. (ANI)