Indian benchmark indices retreated from their early gains to close marginally lower on Monday, with broader markets facing steeper declines amid profit booking and mixed global cues. The BSE Sensex slipped 73.48 points to close at 81,151.27, while the NSE Nifty declined 72.95 points to end at 24,781.10.
“The Indian benchmark indices started the day positively but came under the pressure of the broad-based profit booking later during the day,” said Ameya Ranadive, Sr Technical Analyst at StoxBox.
Two-wheeler manufacturers led the gainers, with Bajaj Auto surging 4.34 per cent, followed by HDFC Bank (2.57 per cent), Asian Paints (1.70 per cent), M&M (1.17 per cent), and Eicher Motors (0.68 per cent). On the flip side, Tata Consumer Products witnessed the steepest fall of 7.08 per cent, followed by Kotak Mahindra (-4.73 per cent), Bajaj Finserv (-3.37 per cent), BPCL (-3.36 per cent), and IndusInd (-3.03 per cent).
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HDFC Bank led the gainers among Sensex stocks, rising 2.83 per cent to ₹1,728.80, followed by Asian Paints (+1.58 per cent) and Mahindra & Mahindra (+0.91 per cent). Tech Mahindra and Reliance also posted gains of 0.78 per cent and 0.76 per cent, respectively. Among the losers, Kotak Bank dropped 4.29 per cent, while Bajaj Finserv declined by 3.05 per cent. IndusInd Bank, Adani Ports, and UltraTech Cement also fell by 2.86 per cent, 2.15 per cent, and 1.93 per cent, respectively.
The broader market indices underperformed the benchmarks, with the Nifty Midcap Select dropping 2.61 per cent and Nifty Next 50 declining 1.35 per cent. Market breadth remained negative, with 2,914 stocks declining against 1,123 advances on the BSE.
“The broader markets continued to extend their losses as the combination of a disappointing earning season, FII outflow and profit booking amidst the chaos took a toll on the market,” Ranadive added.
Deepak Jasani, Head of Retail Research at HDFC Securities, noted, “Asian markets started the week on a mixed note Monday after US stocks reached new records, capping off another successful week and as traders weigh Chinese central bank interest rate cuts aimed at reigniting the world’s number two economy.”
Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs) were net sellers in the capital market segment with a net outflow of ₹5,485.70 crore, as per data from BSE, NSE, and MSEI. Domestic Institutional Investors (DIIs), in contrast, recorded a net purchase of ₹5,214.83 crore during the same period. The trading activity also indicated that other market participants, such as clients and NRIs, continued to show a net selling trend, while proprietary traders posted a net buying value of ₹2,862.35 crore.
The Nifty Bank index closed at 51,962.70, down 0.25 per cent, while the Financial Services index managed to eke out marginal gains of 0.07 per cent. The market saw 254 stocks hitting 52-week highs, while 71 touched their 52-week lows.
“Despite selective rebounds in heavyweight stocks, supported by earnings, most gains appear unsustainable, mainly due to prevailing bearish sentiment,” said Ajit Mishra, SVP Research at Religare Broking Ltd.
Technical analysts suggest the market could remain range-bound in the near term. “We expect a rangebound price action in the range 24500 – 25200 from short term perspective,” said Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas.
The India VIX, which measures market volatility, rose by 5.6 per cent compared to Friday’s close, indicating increased uncertainty in the market.