Market Overview
In a volatile trading session on Monday, the benchmark stock indices Sensex and Nifty ended flat, reflecting ongoing challenges in the market. Sensex gained a slight 9.83 points, closing at 79,496.15, while Nifty dipped 6.90 points to settle at 24,141.30. The market’s performance was influenced by persistent foreign institutional investor (FII) selling, disappointing quarterly earnings reports, and weak trends from Asian markets.
Volatility in Trading
The Sensex experienced significant fluctuations throughout the day, oscillating between a high of 80,102.14 and a low of 79,001.34—a total movement of 1,100.8 points. The Nifty’s marginal decline highlighted the cautious sentiment among investors as they reacted to the broader economic indicators.
Disappointing Earnings Impact Stocks
Among the stocks, Asian Paints saw a sharp decline of over 8% after reporting a 43.71% drop in consolidated net profit for the September quarter, attributed to soft demand and rising material costs. Other laggards included Tata Steel, Bajaj Finance, Mahindra & Mahindra, and JSW Steel. Conversely, Power Grid, HCL Technologies, Infosys, and ICICI Bank managed to post gains amidst the mixed results.
Foreign Investor Sentiment
Prashanth Tapse, Senior VP of Research at Mehta Equities Ltd, noted that Indian markets are under pressure due to relentless selling by foreign investors. He highlighted that FII actions are significantly influencing market momentum, compounded by weak earnings and uncertainties surrounding potential policy changes under the new Trump administration.
Vinod Nair, Head of Research at Geojit Financial Services, expressed concerns about further downgrades in Nifty earnings, which could dampen investor confidence. He pointed out that while the IT sector is outperforming due to a strong US dollar and anticipated increases in US IT spending, the overall sentiment remains muted ahead of upcoming CPI data.
Global Market Trends
In the broader Asian markets, Seoul and Hong Kong closed lower, while Tokyo and Shanghai posted gains. European markets were trending positively, and Wall Street finished in the green on Friday. Additionally, global oil prices saw a slight decline, with Brent crude falling 0.83% to USD 73.26 per barrel.
