Indian stocks ended the day lower on Monday, with the benchmark Sensex dropping 346 points and the Nifty slipping below the 26,000 mark.
Market Summary
The BSE Sensex closed at 84,695.54, down 0.41%, while the NSE Nifty 50 settled at 25,942.10, down 0.38%.
Key Decliners
- Adani Ports
- Power Grid
- HCL Technologies
- Trent
- Bharat Electronics
These stocks fell between 1% and 2%.
Sector Performance
Energy stocks slipped 0.5%, led by a 0.9% fall in Reliance Industries. The IT index dropped 0.8%. Mid‑cap stocks were down 0.5% and small‑caps fell 0.7%.
Expert View
Vinod Nair, head of research at Geojit Investments, said the market lacks clear catalysts and many investors are in holiday mode, which could lead to a short‑term consolidation. He expects focus to shift to Q3 earnings and any news on the U.S. trade agreement. Nair added that, given global trade worries and a weaker rupee, large‑cap stocks may be preferred for safety and steady earnings.
Global Context
World equity markets stayed near record highs, with the dollar near a three‑month low as investors price in more Federal Reserve rate cuts next year. In Europe, MSCI’s global index was up about 21% for the year.
Commodities and Currency
Oil prices rose modestly, with Brent at $61.31 a barrel and WTI at $57.39. Copper on the London Metal Exchange jumped 3.3% to $12,560 per metric ton.
The Indian rupee weakened for the third day, ending at 89.9750 per U.S. dollar, pressured by corporate dollar demand and a firming dollar index.
Takeaway
With lower trading volumes, foreign fund outflows, and limited short‑term drivers, Indian equities may see a period of consolidation. Investors might look to large‑cap stocks for stability while awaiting upcoming earnings reports.
Remember, this is my perspective, not a prediction. Do your own research before making any investment decisions.