In a stark reminder of market volatility, India’s key indices opened significantly lower on the first trading day of the week. The BSE Sensex shed 528 points or 0.72%, settling at 73,198 in the initial minutes, while Nifty50 lost 152 points to hover around 22,245.
The decline was broad-based, hitting almost every sector. Financial services giants like ICICI Bank and Axis Bank dropped over 2%, IT bellwethers such as TCS and Wipro fell 1-1.5%, and auto majors like Maruti and Tata Motors extended losses amid softening demand cues.
Global headwinds played a starring role. US markets ended mixed on Friday, but surging bond yields and persistent inflation data have investors fretting over delayed rate cuts. China’s economic slowdown added to the mix, impacting export-oriented stocks.
‘Overbought conditions from last week’s rally are correcting, exacerbated by FII outflows,’ observed Ajit Mishra, VP-Research at Religare Broking. ‘SIP flows and DII buying should limit downside.’
Positive sparks included select PSU banks and metals, buoyed by domestic infra push. However, overall advance-decline ratio stood at a dismal 1:2.
The Indian rupee depreciated 12 paise to 83.46/USD, reflecting dollar strength. Oil prices remained elevated, squeezing margins for oil marketing companies.
With corporate earnings season winding down, attention shifts to macroeconomic indicators. Key resistance for Sensex lies at 74,000; a break below 73,000 could test 72,500.
This opening slump highlights the interplay of domestic resilience and global fragility, setting the tone for a potentially turbulent week ahead.