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Sensex Today: Benchmark equity indices BSE Sensex and Nifty50 were trading lower on Monday, amid an uncertain outlook for Indian markets.
Sensex Today
Sensex Today: Benchmark equity indices BSE Sensex and Nifty50 were trading lower on Monday, amid an uncertain outlook for Indian markets.
At the opening bell, the BSE Sensex dropped 387 points, or 0.51%, to 75,552.14, while the Nifty50 stood at 22,789.85, down 139.40 points, or 0.61%.
The Sensex and Nifty briefly traded at the day’s low before recovering. At 09:16 a.m., the Sensex was down 590.57 points, or 0.78%, at 75,348.64, and the Nifty was down 196.15 points, or 0.86%, at 22,733.10.
Indian stock market investors are expected to monitor global market movements and developments in the international geopolitical landscape. This includes efforts by the new US administration to address the Russia-Ukraine conflict and Middle Eastern issues, along with the ongoing trend of foreign investors selling Indian equities, to gauge market direction today.
Indian markets have closed lower for the last eight consecutive sessions.
The broader market sell-off was more pronounced, with the Nifty Smallcap 100 and Nifty Midcap 100 indices plunging over two percent at the open.
Although all 13 sectoral indices started in the red, some managed to trim losses and turned mildly positive. The Nifty Realty, Nifty Auto, and Nifty Media indices experienced the steepest declines, falling between 1.5% and 2.5%. On the other hand, the Nifty Pharma and Nifty IT indices posted gains.
There are a few positive developments that could lend support to the markets: easing geopolitical tensions, with hopes that the Russia-Ukraine war may come to an end; cooling crude oil prices; a softening US dollar; and growing expectations that the Reserve Bank of India could cut its benchmark lending rate in the April MPC meeting.
The ongoing sell-off has pushed the country’s market capitalization to an eight-month low. The market capitalization of BSE-listed companies has fallen below Rs 400 lakh crore for the first time since June 2024.
As the earnings season for the December 2024 quarter concludes, analysts have found the results underwhelming, with single-digit PAT growth for both the Nifty and BSE 500. This has led to another round of downgrades, though less severe than those following the September quarter.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that the market’s underperformance stems from a combination of high valuations and a slowdown in corporate earnings.
“A modest single-digit earnings growth doesn’t justify high valuations. This is the key reason behind the relentless FII selling, which has impacted the market. The appreciating dollar has only worsened the situation,” he said, adding, “A recovery in earnings and a weakening dollar could reverse the market’s downward trend. This may happen soon, as India’s macros remain strong and a growth and earnings recovery are on the horizon.”
Looking ahead, the performance of the banking and IT sectors will be crucial in determining market direction. Traders should adjust their strategies, focusing on trade management, as suggested by Ajit Mishra, SVP of Research at Religare Broking. “While efforts to hold the 22,800 level persist, the overall market structure suggests more downside risks.”
Global Cues
On Friday, Wall Street came close to reaching a new record high, shrugging off concerns about Trump’s tariffs, which are set to be implemented in the coming weeks. The S&P 500 ended flat, while the tech-heavy Nasdaq Composite gained 0.4%, and the Dow Jones Industrial Average slipped by 0.4%.
