Benchmark Indian stock indices closed sharply lower on Monday, dragged down by heavy losses in automobile and consumer-centric stocks, alongside broad-based sectoral weakness and rising investor caution.
Market Summary:
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BSE Sensex: Fell 872.98 points to close at 81,186.44
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NSE Nifty50: Dropped 261.55 points to end at 24,683.90
Key Factors Behind the Decline:
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Lack of positive domestic triggers
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Uncertainty surrounding U.S. fiscal stability
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Delays in finalising the India-U.S. trade agreement
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High current market valuations prompting profit booking
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Increased caution among Foreign Institutional Investors (FIIs)
“Given the current premium valuations and delays in the trade deal, we foresee a phase of short-term consolidation,” said Vinod Nair, Head of Research at Geojit Financial Services.
Top Losers on Sensex:
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Eternal: -4.10% (biggest loser)
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Maruti Suzuki: -2.76%
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Mahindra & Mahindra: -2.13%
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UltraTech Cement: -2.04%
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Power Grid Corp: -2.01%
Notable Gainers:
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Tata Steel: +0.73%
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Infosys: +0.08%
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ITC: +0.07%
Broader Markets & Volatility:
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Nifty Midcap 100: -1.46%
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Nifty Smallcap 100: -0.82%
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India VIX (Volatility Index): +0.33%, signaling increased nervousness
According to Aditya Gaggar, Director at Progressive Shares, the selling intensified in the second half of the session due to weakness in the midcap and smallcap segments.
Sectoral Performance – All in Red:
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Nifty Auto: -1.96% (worst performer)
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Nifty Healthcare: -1.27%
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Nifty Financial Services 25/50: -1.22%
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Nifty Pharma: -1.23%
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Nifty FMCG: -1.17%
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Other sectors including Private Bank, PSU Bank, Metal, Oil & Gas, Consumer Durables, Realty, IT, Media, and Bank also saw losses.
Technical Outlook:
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Key resistance: 24,900
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Key support: 24,535
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The next session will be crucial in gauging whether this pullback deepens or sees a reversal.
In summary, Indian markets faced a widespread selloff amid global and domestic uncertainties, with midcaps and autos leading the decline. Investors are expected to remain cautious until clarity emerges on macro and geopolitical fronts.
