Dalal Street dawned under a crimson cloud once again as the Indian benchmark indices opened lower for the third successive session. The Sensex plummeted close to 200 points at the outset, capping off a turbulent start to the trading week amid mounting global risks.
At 9:15 AM, the Sensex stood at 81,498, reflecting a 210-point or 0.26% erosion. Companion Nifty 50 index retreated 62 points to 24,783, with early momentum suggesting further downside potential.
The trigger? Surging Brent crude prices crossing $75 per barrel, sparked by Middle East geopolitical unrest, are casting long shadows over energy-sensitive India. Compounding this are cautious corporate results and profit-booking after recent rallies.
Banking heavyweights dominated the downside: State Bank of India and Punjab National Bank fell over 1%, pressuring the Bank Nifty index. Technology and realty sectors joined the fray, hit by profit-taking and global tech sell-offs.
Pockets of green emerged in staples and utilities. Nestle India and Power Grid bucked the trend, gaining traction as investors sought stability.
FII activity remained negative, with over ₹10,000 crore pulled out in September so far. DIIs countered with inflows, but breadth remained skewed towards decliners – 2,100 stocks down versus 1,100 up in initial trade.
Technicals indicate support at Sensex 81,000, with resistance at 82,200. ‘Bearish engulfing pattern signals caution; avoid aggressive bets,’ warns a technical analyst.
Wrapping up, while short-term turbulence persists, fundamentals like robust GDP growth and improving monsoons offer solace. Traders are glued to upcoming inflation prints and central bank signals for the next leg of this market saga.