Indian Equity Markets Face Challenges
India's stock market, including the Nifty 50 and Sensex, experienced a decline on Monday, reflecting the weak tone of global markets. Investors are cautious due to concerns over global growth, geopolitical tensions, and currency volatility.
The BSE Sensex dropped 279 points to 84,989, while the Nifty50 fell 81 points to 25,966. Broader markets also trended weaker, with the Nifty MidCap index down 0.40% and the Nifty SmallCap index declining 0.15%.
Expert Insights
According to VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, the elusive US-India trade deal continues to impact India's exports to the US, widening the trade deficit and depreciating the rupee. However, a weakening AI trade could benefit India.
Ajit Mishra, SVP, Research at Religare Broking, advises investors to adopt a measured approach, staying selective and focusing on stability rather than aggressive risk-taking. He recommends large-cap exposure, particularly in private banking, automobiles, metals, and pharmaceuticals.
Key Events to Watch
- Wholesale Price Index (WPI) inflation and India's trade balance are set to be released this week.
- HSBC Composite, Manufacturing and Services PMI flash readings will provide early signals on economic momentum.
- Any update on the India–US trade agreement will be crucial for market direction.
- Bank of Japan, European Central Bank, and Bank of England will release policy updates, influencing global cues.
Technical Outlook
The Nifty attempted a recovery from lower levels, hitting a high of 26,178 before profit-taking dragged it to 25,693. Analysts note that the return of buying interest near support zones indicates resilience.
The Bank Nifty has a key support zone at 58,400–58,800, with upside hurdles at 60,000–60,500. A breakdown below the support zone could push the index toward 57,600.
Investors are advised to check with certified experts before making any investment decisions, as the views and recommendations made above are those of individual analysts or broking companies.