Indian Stock Markets End Flat Amid Sector-Specific Selling Pressure

Indian stock markets closed on a flat note on Monday, with mixed performance across sectors.

The Sensex showed a slight gain, while the Nifty experienced a marginal decline as investors reacted to selling in the auto, pharma, FMCG, and metal sectors.

The benchmark BSE Sensex closed at 79,496.15, marking a modest increase of 9.83 points, or 0.01 percent. In contrast, the Nifty ended at 24,141.30, down by 6.90 points, or 0.03 percent.

Despite the overall flat trend, sector-specific movement was observed with significant buying in certain indices, such as IT, PSU Banks, and Private Banks, while metals, media, and healthcare stocks saw substantial selling pressure.

Among the key performers, the Nifty Bank index saw a notable rise, closing at 51,876.75, up by 315.55 points, or 0.61 percent.

Conversely, the Nifty Midcap 100 index slipped by 498.25 points, or 0.83 percent, settling at 55,853.75. The Nifty Smallcap 100 index also experienced a decline of 220.45 points, or 1.20 percent, closing at 18,225.15.

The day’s trading saw heavy losses in stocks like Asian Paints, Tata Steel, Bajaj Finance, Mahindra & Mahindra (M&M), JSW Steel, NTPC, Bajaj Finserv, and L&T, all of which weighed on the Sensex.

Asian Paints, in particular, hit hard after several brokerage firms expressed concerns over the company’s disappointing second-quarter results, causing its shares to fall by 8.21 percent.

On the other hand, a handful of stocks saw gains, including Power Grid, HCL Technologies, Infosys, Tech Mahindra, TCS, Maruti Suzuki, ICICI Bank, HDFC, and Titan, which helped balance the overall market sentiment.

Market breadth was negative with more stocks declining than advancing. On the Bombay Stock Exchange (BSE), 1,539 stocks closed in the green, while 2,557 stocks ended in the red, and 117 stocks saw no change.

Analysts Say Markets Driven By FIIs Amid Uncertainty

Analysts noted that Foreign Institutional Investors (FIIs) are driving the market’s current momentum. They expect FIIs to play a key role in the ongoing earnings season and amid geopolitical uncertainties, especially regarding US policy.

The market remains cautious with a weak earnings backdrop and global uncertainty lingering over the near term.

Meanwhile, gold prices in India also saw a dip. As per the Indian Bullion Jewellers Association (IBJA), the price of 24-carat gold fell to Rs 77,030 per 10 grams, while the price of 22-carat gold dropped to Rs 75,180 per 10 grams.

Experts suggest that gold prices may continue to struggle below the key resistance level of $2,750, which could keep domestic prices under pressure.

The Indian rupee closed flat at 84.38 against the US dollar, maintaining its position at near-record lows.

The dollar index remained neutral, and FIIs showed limited selling activity as the week began. Market participants are now awaiting the US Consumer Price Index (CPI) data, due later in the week, which could influence the trajectory of the dollar and the global market sentiment.

Also Read: Gold Prices Dip Below Rs 77,000 As Post-Festive Demand Slows