Indian equity markets started the week on a down note on Monday, reflecting a negative sentiment from global stock exchanges.
As of 9:40 AM, the BSE Sensex fell by 551 points, or 0.64%, settling at 85,019, while the Nifty 50 index dropped 163 points, or 0.63%, to reach 26,015.
Among the notable stocks on the BSE, Tata Steel, JSW Steel, Titan, Asian Paints, Hindustan Unilever (HUL), HCL Technologies, and Bajaj Finance emerged as top gainers. Conversely, companies like Tech Mahindra, ICICI Bank, Axis Bank, Tata Motors, Reliance Industries, Mahindra & Mahindra, Power Grid, IndusInd Bank, State Bank of India (SBI), Bharti Airtel, UltraTech Cement, and HDFC Bank experienced significant losses.
The downturn affected not only large-cap stocks but also led to declines in midcap and smallcap indices.
The Nifty Midcap 100 index fell by 482 points, or 0.80%, to 59,898, while the Nifty Smallcap 100 index dropped 137 points, or 0.71%, to 19,104.
Sector-wise analysis revealed that the Auto, IT, PSU Bank, Financial Services, Pharma, Energy, and Realty sectors were the biggest losers. In contrast, the FMCG and Metal sectors showed some resilience, posting gains amidst the broader market decline.
Asian markets presented a gloomy picture, with declines observed in most markets, excluding Hong Kong and Shanghai. Tokyo, Seoul, and Jakarta reported some of the steepest losses. The US markets closed on a mixed note on Friday, further contributing to the cautious outlook for Indian equities.
Experts Predict Indian Stock Market Consolidation
Market experts suggest that the Indian stock market may be entering a consolidation phase in the near term.
A significant factor impacting foreign institutional investors (FIIs) is the strong performance of Chinese stocks, particularly the Hang Seng index, which surged approximately 18% in September.
“FIIs may continue to sell in India and move some more money to better-performing markets,” analysts noted.
However, they emphasized that this selling pressure is unlikely to have a substantial impact on the Indian market due to strong domestic investment support.
“Investors can use dips to buy quality largecaps which are fairly valued,” they advised.
On 27 September, foreign institutional investors turned net sellers, offloading equities worth Rs 1,209 crore, while domestic institutional investors remained active buyers, purchasing shares valued at Rs 6,886 crore on the same day.
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