Our Correspondent
Indian equity benchmarks ended lower on Monday, with the Sensex falling 171.72 points and the Nifty slipping below the 24,250 mark as selling pressure in banking, financial and media stocks offset strong buying in metal, information technology and realty counters.
The S&P BSE Sensex declined 171.72 points, or 0.22 per cent, to settle at 77,369.11, while the Nifty 50 shed 32.95 points, or 0.14 per cent, to close at 24,219.05. The decline snapped the benchmarks’ recent winning momentum, although the indices had still posted gains over the preceding trading sessions.
The market opened on a relatively firm note. The Sensex initially gained more than 200 points and the Nifty moved above 24,300, helped by buying in heavyweight stocks and softer crude prices in early trade. However, gains failed to sustain as investors turned cautious amid weak global signals and renewed selling in financial stocks.
Banking stocks weigh on benchmarks
Banking and financial counters emerged as the principal drag on the market. The Nifty PSU Bank index declined 0.93 per cent to 8,539.75, with Bank of Baroda falling 2.23 per cent, Canara Bank 2.05 per cent, Punjab & Sind Bank 0.94 per cent, State Bank of India 0.88 per cent and Indian Bank 0.74 per cent.
The weakness in financial stocks was significant because banks and financial services companies carry substantial weight in the benchmark indices. Selling in these counters therefore exerted disproportionate pressure on the Sensex and Nifty even as several other sectors remained positive.
The Nifty Media index also declined 0.58 per cent to 1,603.30. Zee Entertainment Enterprises fell 2.80 per cent, Nazara Technologies 1.81 per cent, Tips Music 1.11 per cent, Hathway Cable & Datacom 0.84 per cent and Sun TV Network 0.70 per cent.
Metal stocks shine
In contrast, metal stocks remained the strongest pocket of the market. The Nifty Metal index climbed 1.59 per cent to 13,381.45, extending its winning run to a third consecutive session.
Welspun Corp gained 4.21 per cent, Steel Authority of India rose 3.57 per cent, JSW Steel advanced 2.57 per cent, Hindalco Industries gained 2.37 per cent and National Aluminium Company moved up 2.24 per cent.
The metal index has gained 1.78 per cent over the past week, 4.35 per cent over the past month and nearly 38.75 per cent over the past year, making it one of the market’s stronger sectoral performers.
The strength in metals also provided support to Tata Steel, which emerged as the most actively traded Nifty 50 stock during the session. Around 378.01 lakh shares changed hands, representing a 107.33 per cent increase over its average daily volume of the previous week. The stock, however, remains down about 2.26 per cent over one month while gaining 13.31 per cent over the past year.
IT and realty outperform
Apart from metals, technology and realty shares also bucked the broader weakness. The resilience in IT stocks came despite a mixed global environment, while realty counters benefited from continued investor interest in domestic-facing sectors.
The contrasting sectoral performance highlighted the selective nature of Monday’s trading session rather than a broad-based risk-off move.
Broader market remains resilient
The broader market marginally outperformed the frontline indices, although it too ended in negative territory. The BSE 150 MidCap Index declined 0.01 per cent, while the BSE 250 SmallCap Index fell 0.17 per cent.
Market breadth remained weak. According to provisional data, 2,041 BSE-listed shares advanced while 2,393 declined, with 254 stocks unchanged. The negative breadth indicated that selling was spread across a sizeable portion of the market, even though sectoral gains in metals and IT cushioned the headline indices.
Eight stocks in the NSE 500 index also touched their respective record highs during the session, underlining the continued presence of stock-specific buying despite the subdued benchmark performance.
Eternal sees heavy trading
Eternal Ltd was the second most actively traded Nifty 50 stock, with around 218.93 lakh shares changing hands. Trading volume was nearly 19.86 per cent below its average daily volume over the previous week.
Despite the subdued volume, Eternal has remained a relatively strong performer recently, gaining about 14.45 per cent over the past month. Its one-year gain, however, stood at a modest 1.93 per cent.
New listing draws investor interest
The primary market also remained in focus. Lalithaa Jewellery Mart made a strong debut on the BSE, closing at Rs 249.20 against an issue price of Rs 201, translating into a gain of nearly 24 per cent. The stock had opened at Rs 265.30, a premium of almost 32 per cent, and touched an intraday high of Rs 274.30. More than 88 lakh shares were traded in the counter.
Another new listing, Horizon Industrial Parks, ended at Rs 59.84 against its issue price of Rs 60.
Crude oil and global cues remain key risks
Crude oil remained an important factor for domestic investors. MCX crude oil futures were quoted around Rs 8,363 per barrel, down 2.28 per cent in the session. However, international crude remained elevated, with Brent trading around the mid-$90-per-barrel zone, keeping concerns over India’s import bill and inflation alive.
For an oil-importing economy such as India, a sustained rise in crude prices can pressure the rupee, inflation expectations and corporate margins, particularly in sectors with high fuel or transportation costs.
Global cues also remained mixed. Dow futures were down around 0.21 per cent, while domestic investors continued to track overseas bond yields, currency movements and geopolitical developments.
Institutional flows offer support
Domestic institutional buying has provided an important cushion to Indian equities in recent sessions. Data for August 21 showed foreign investors as net sellers of about Rs 543 crore, while domestic institutions bought shares worth around Rs 2,124 crore on a net basis. The trend has underscored the growing role of domestic liquidity in absorbing foreign selling pressure. (AppUo)
This divergence between foreign and domestic flows remains a critical market theme. A sustained return of foreign buying could strengthen the next leg of the rally, while continued FII selling could keep benchmark indices volatile.
Futures signal cautious start to next session
Nifty 50 futures ended around 24,188, down 0.40 per cent and at a discount of roughly 31 points to the spot index. The futures reading points to a cautious near-term sentiment, although investors will continue to watch global markets, crude oil, currency movements and institutional flows for direction.
With the Nifty closing at 24,219.05, the 24,200 zone remains an important near-term psychological level. Sustaining above this area could help the index attempt a recovery towards 24,300, while persistent selling pressure could expose the market to further consolidation.
Overall, Monday’s session reflected a selective and range-bound market, rather than a broad-based sell-off. Strong metal stocks, IT counters and realty shares provided support, but weakness in banks and financials prevented the benchmark indices from extending their recent gains. Investors are likely to remain stock-specific in the near term, with global cues, crude oil prices, foreign fund flows and domestic institutional buying emerging as key drivers for the market’s next move.
Global Markets
European markets . DOW futures are lower by 0.21% today.
MCX Crude oil futures are firmly lower by 2.28% at Rs 8363.0 per barrel.
NIFTY50 futures ended with a modest loss of 0.40% at 24188 and are in a discount of -31 points compared to NIFTY50.
Disclaimer: Stock market investments are subject to market risks. Please consult with a certified financial advisor before making any investment decisions.