Source : INDIA TODAY NEWS
Benchmark stock market indices ended lower on Monday, weighed down by a sharp fall in IT stocks and elevated crude oil prices. The weakness came despite gains in metals, realty and some private sector banks, while investors remained cautious about the impact of higher oil prices on the domestic economy.
The BSE Sensex closed 281.09 points, or 0.36%, lower at 77,728.16, while the Nifty 50 fell 78.35 points, or 0.32%, to 24,287.65. The Sensex had opened at 77,892.92 and moved between a high of 77,928.68 and a low of 77,453.75 during the session.
IT STOCKS LEAD THE FALL
IT stocks were the biggest drag on the benchmarks. The Nifty IT index fell 1.75%, with all major large-cap IT names ending in the red.
Infosys was the biggest Sensex loser, falling 2.66%. HCLTech declined 2.53%, TCS fell 1.87%, Tech Mahindra dropped 1.77% and ITC lost 1.57%. Sun Pharma also declined 2.20%.
The weakness in IT came as investors remained cautious about the sector after recent concerns around technology spending and the global outlook.
METALS, REALTY HELP LIMIT LOSSES
Not all sectors ended lower. The Nifty Metal index gained 1.26%, while the Nifty Realty index rose 1.46%. The Nifty Private Bank index also gained 0.23%.
Among the Sensex stocks, Tata Steel was the biggest gainer, rising 1.47%. Axis Bank gained 1.03%, Reliance Industries rose 0.80%, BEL added 0.49%, HDFC Bank gained 0.36% and Larsen & Toubro advanced 0.33%.
Bajaj Finance was also up 0.21%. ICICI Bank ended almost flat, with a marginal 0.01% decline.
On the other side, Trent fell 1.34%, NTPC declined 1.20%, Hindustan Unilever dropped 1.15% and Bharti Airtel fell 1.13%. M&M also declined 1.13%, while Bajaj Finserv lost 1.03%.
BROADER MARKET SHOWS MIXED TREND
The broader market was relatively more resilient than the benchmark indices.
The Nifty 100 fell 0.26%, while the Nifty 200 and Nifty 500 declined 0.20% and 0.13%, respectively. However, the Nifty Midcap 50 gained 0.10% and the Nifty Midcap 100 rose 0.05%.
Small-cap stocks performed better, with the Nifty Smallcap 100 gaining 0.36%. The India VIX, a measure of expected market volatility, rose 0.48% to 11.36.
Apart from metals and real estate, some pockets of the market also remained firm.
The Nifty Oil & Gas index gained 0.08%, while the Nifty Private Bank index rose 0.23%. Nifty Financial Services 25/50 was almost unchanged, with a marginal 0.00% move.
However, the Nifty FMCG index fell 1.05%, Nifty Healthcare declined 0.46% and Nifty Pharma fell 0.39%. Nifty PSU Bank slipped 0.37%, while Nifty Financial Services Ex-Bank declined 0.08%.
The Nifty Midcap IT & Telecom index fell 0.76%, showing that weakness was not limited to the largest IT companies.
CRUDE OIL, RUPEE REMAIN KEY CONCERNS
Crude oil remained elevated during the session. WTI crude was trading at $83.09 a barrel, up 0.84%, while Brent crude was at $89.61, up 1.23%.
Higher oil prices remain a concern for India because the country is a major crude importer. A sustained rise in oil prices can increase import costs and put pressure on inflation, the rupee and corporate margins.
The Indian rupee also weakened on Monday. It fell 0.2% to end at 95.6025 against the US dollar, its weakest level in two weeks.
The rupee came under pressure as oil prices moved higher. Market sentiment was also affected after the Reserve Bank of India brought forward the end date for its discounted forex swap facility for overseas deposits by a month. The rupee avoided a sharper fall due to likely intervention by the central bank, traders said.
The market is likely to remain focused on crude oil prices and developments around the Middle East, particularly as elevated oil prices remain an external risk for Indian equities.
At the same time, the relative strength in mid- and small-cap stocks and buying in sectors such as metals and realty provided some support to the broader market.
The mixed market performance also showed that while the benchmark indices remained under pressure, investors continued to find opportunities in specific sectors and stocks.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
– Ends
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SOURCE :- TIMES OF INDIA
