Indian stock markets faced a fourth consecutive session of losses on Monday, with heavy selling impacting information technology, realty, pharma, and auto stocks. The benchmark Sensex concluded at 84,695.54, dropping 345.91 points or 0.41%. Similarly, the Nifty closed lower at 25,942.10, down 100.20 points or 0.38%, as selling pressure persisted across major sectors.
Analysts noted that the Nifty slipped below the psychological 26,000 mark and its 20-day EMA, registering nearly 100 points in losses amidst increased volatility before the monthly F&O expiry. They observed bearish candlestick patterns on the index, indicating short-term selling pressure, although it remained close to key moving averages at present.
Experts suggested that a sustained breach below the 25,900 level could expose the index to further downside towards 25,800–25,700. On the Sensex, stocks like PowerGrid, Trent, HCL Tech, and BEL were prominent losers, exerting downward pressure on the index. However, some buying activity was witnessed in specific stocks, including Tata Steel, Asian Paints, Hindustan Unilever, Eternal, NTPC, and Axis Bank, which ended the session with gains.
The broader market also experienced strain, with the Nifty Midcap 100 index declining by 0.52% and the Nifty Smallcap 100 slipping by 0.72%. Notably, IT, realty, and auto sectors encountered significant selling pressure, with the Nifty IT index falling by 0.75%, and the Realty and Auto indices dropping by 0.67% and 0.53%, respectively.
Conversely, certain defensive and select sectors exhibited resilience. The Nifty Media index saw a rise of 0.93%, while PSU Bank and FMCG indices closed marginally higher by 0.05% and 0.11%, respectively. Analysts highlighted a cautious market sentiment, with investors trimming positions amid sector-specific selling and a lack of robust positive catalysts. Market observers emphasized that despite global uncertainties surrounding interest rates and geopolitics, strong liquidity support from domestic investors and robust domestic macro fundamentals were offering downside protection.
