Indian equities extended their losing streak into the fourth session on Monday, opening deep in negative territory led by a brutal pummeling in metal stocks. The Nifty Metal Index, a bellwether for industrial health, cratered by over 2.3%, underscoring vulnerabilities in export-dependent sectors.
At 9:15 AM, Sensex was down 550 points at around 80,200, while Nifty slipped below 24,350. The carnage was most evident in metals, where Tata Steel dropped 3%, Hindalco 2.8%, and JSW Steel 2.5%. Traders attributed the slide to a perfect storm: slumping London Metal Exchange prices, US Fed rate hike speculations, and weakening rupee adding import cost pressures.
Global cues set a bearish tone overnight, with Asian peers like Hang Seng and Nikkei also opening weak. Domestically, high crude oil prices amid Middle East strife fueled inflation fears, impacting consumer stocks indirectly.
FIIs, who have been net sellers for 12 straight days, intensified outflows, prioritizing safer US treasuries amid yield spikes. DIIs provided some cushion but couldn’t offset the deluge.
Looking ahead, market watchers are glued to upcoming corporate earnings and macroeconomic data. ‘This metal-led decline could broaden if oil stays elevated,’ warned an economist. Technical charts suggest oversold conditions, potentially setting up short-covering rallies. Yet, with no immediate catalysts, the path of least resistance remains downward. Prudent investors are rotating into gold and quality large-caps for protection.