The Indian equity market concluded Monday's trading session in negative territory, driven by a combination of geopolitical concerns and disappointing banking sector earnings. The benchmark Sensex shed 443 points to close at 77,708, while the Nifty 50 slipped 96 points, settling at 24,238.
Geopolitical Tensions and Banking Results Impact Sentiment
Investor sentiment was significantly dampened by reports of US and Iran engaging in attacks over the weekend, leading to a surge in global oil prices to $90 per barrel. Domestically, the release of Q1 earnings reports from major banking players such as Axis Bank, HDFC Bank, and Kotak Mahindra Bank over the weekend contributed to the market's decline. These banking stocks were among the top losers, with some falling up to 5.48%.
Other prominent stocks that dragged the Sensex down included Maruti Suzuki, Infosys, TCS, M&M, and IndiGo. Conversely, a few companies managed to buck the trend, with Trent, Power Grid, and NTPC emerging as top gainers, rising up to 3%.
Market Breadth and Key Levels
The broader market also reflected the prevailing weakness. Out of 4,514 stocks traded on the BSE, 2,039 closed in the red, while 2,226 managed to end in the green, and 249 remained unchanged. A notable 107 stocks hit their 52-week lows, although 124 shares also touched new 52-week highs. Additionally, approximately 15 stocks reached their lower circuit limits, while 13 hit upper circuits.
Expert Perspectives on Market Outlook
Ajit Mishra, SVP, Research at Religare Broking, observed that the Nifty's failure to breach the 24,400 mark reinforced its range-bound trend. He identified immediate support in the 24,000–23,800 range, with a decisive breakout above 24,400 needed for a recovery. Mishra advised a cautious 'buy-on-dips' approach, focusing on stronger stocks amid rotational buying across sectors.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, echoed the sentiment of a narrowed trading range awaiting a decisive breakout. He highlighted key levels to watch: 24,000/76,800 on the downside and 24,350/78,300 on the upside. Chouhan suggested reducing weak long positions in the 24,350–24,450 zone and selectively accumulating quality stocks on declines.
In the previous session, the Sensex had surged 965 points, or 1.25%, to close at 78,151, and the Nifty50 advanced 261 points, or 1.09%, to settle at 24,344, touching an intraday high of 24,367.30.