Indian stock markets witnessed a downbeat opening on Monday morning, reflecting cautious investor sentiment driven by pressure on IT and private banking stocks, coupled with uncertainties surrounding a key trade agreement with the United States. As of 9:30 AM, both major benchmark indices were trading in the red, marking a shaky start to the week.
The S&P BSE Sensex registered a fall of 225.28 points, dragging it down to 81,237.81, while the NSE Nifty50 dipped 43.60 points, settling at 24,793.40 in early trade. This early decline indicates growing concerns among investors regarding both domestic and international developments.
According to Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the market has been under pressure due to a lack of strong positive catalysts. He pointed out that despite progress in trade negotiations with other global powers like Japan and the European Union, the much-anticipated India-US trade agreement remains stalled. This ongoing uncertainty, he noted, has further eroded market confidence and pushed the Nifty index to a one-month low.
In the midst of the overall decline, certain stocks managed to stand out with positive momentum. Leading the gainers on the BSE Sensex was Bajaj Finserv, which rose by 1.47%, followed closely by Tata Motors with an increase of 1.45%. Maruti Suzuki also climbed 0.72%, Power Grid advanced by 0.65%, and ICICI Bank showed modest growth of 0.57%.
However, the broader market saw more prominent losers. The worst performer of the day was Kotak Mahindra Bank, which plummeted by a significant 6.40%. Other laggards included Tata Consultancy Services (TCS), falling 1.44%, Bharti Airtel dropping 0.91%, Infosys down by 0.90%, and Titan Company, which slipped 0.86%.
Sector-wise, the performance was mixed. The Nifty Midcap100 index gained 0.57%, while the Nifty Smallcap100 edged up by 0.29%. The India VIX, which measures market volatility, surged 3.81%, suggesting increased nervousness among traders.
On a more positive note, several sectoral indices exhibited resilience. Nifty Oil & Gas led the charge with a gain of 0.61%, followed by Nifty Pharma at 0.58%, Nifty Metal at 0.59%, and Nifty Auto, which rose by 0.52%. Additional gains were seen in Nifty FMCG (0.51%), Nifty Healthcare (0.45%), Nifty PSU Bank (0.32%), Nifty Consumer Durables (0.25%), and Nifty Financial Services (0.12%).
On the flip side, Nifty Realty emerged as the biggest loser, plunging by 2.14%. This was followed by Nifty Private Bank, which declined 1.07%, while Nifty IT and Nifty Media lost 0.34% and 0.33%, respectively.
Dr. Vijayakumar emphasized that the sharp downturn in the IT index is significantly weighing on overall market performance. The sector has been hit hard, especially after TCS announced a 2% cut in its global workforce, adding to investor concerns. However, he also highlighted that mid-cap IT firms still hold promise due to their potential for strong future growth.
Adding to the bearish mood is the recent foreign institutional investor (FII) activity, where FIIs pulled out ₹13,552 crore from the cash market just last week. This large-scale selling has added further weakness to the market.
Furthermore, the ongoing Q1 earnings season has not yet delivered any substantial upside surprises, leaving investors cautious. Dr. Vijayakumar advises market participants to adopt a selective and defensive strategy during this volatile period. He recommends focusing on large-cap banking stocks such as ICICI Bank and HDFC Bank, which have posted strong quarterly results and are expected to perform well shortly.
