The Indian equity markets experienced a volatile trading session on Monday, as early gains were wiped out by a sharp sell-off in the latter half of the day. The decline was influenced by weak global cues, particularly a slide in US stock futures.
The benchmark Sensex initially surged to an intra-day high of 74,741, gaining 407 points. However, intensified selling pressure in the final hours led the index to tumble over 700 points from its peak, hitting a low of 74,022. Eventually, the Sensex closed at 74,115, down 217 points or 0.3 per cent.
The Nifty followed a similar trend, reaching a high of 22,677 before sliding to an intra-day low of 22,429. By the end of the session, the index settled at 22,460, marking a decline of 92 points or 0.4 per cent.
The late-session downturn was largely attributed to weakness in US markets, where Dow Jones futures dropped 400 points and Nasdaq futures fell over 1 per cent amid uncertainties surrounding Trump-era tariffs.
Technical Indicators and Market Outlook
Hrishikesh Yedve of Asit C. Mehta Investment Intermediates Ltd. noted that Nifty formed a shooting star candlestick pattern on the daily chart near the bearish gap resistance zone of 22,668-22,720. He highlighted that 22,720 remains an immediate hurdle for Nifty, followed by the key resistance level of 22,800.
“On the downside, the 9-Day Simple Moving Average (9-DSMA) near 22,370 acts as an immediate support level. Until the index sustains above 22,800, traders are advised to buy near support and book profits around resistance zones,” Yedve added.
Market Breadth and Sector Performance
The broader market witnessed significant selling pressure, with more than 2,700 stocks declining on the BSE compared to just over 1,100 advancing stocks.
Among the major laggards in the Nifty were Reliance Industries, IndusInd Bank, Trent, ONGC, Eicher Motors, and Bajaj Auto. However, Power Grid Corporation, Hindustan Unilever (HUL), Infosys, SBI Life, and Nestle India managed to post gains.
Midcap and smallcap stocks faced sharper declines, with the BSE Midcap index falling by 1.5 per cent and the Smallcap index dropping by 2.1 per cent.
On the sectoral front, most indices ended in negative territory, except for FMCG, which showed some resilience. Sectors such as auto, consumer durables, metals, capital goods, oil & gas, realty, and PSU banks recorded losses ranging between 1-2 per cent.
Global Cues and Investor Sentiment
The weakness in Indian markets was largely in line with global trends. Investor sentiment was dampened by a sharp fall in US stock futures, with concerns over potential tariff adjustments adding to the uncertainty.
-IANS
