Benchmark stock market indices closed lower on Monday despite trading flat for a large part of the day but saw a selloff in the later part of the day. The main laggards were metal, consumer durables, and real estate stocks.
The S&P BSE Sensex was down 331.21 points to close at 84,900.71, while the NSE Nifty50 lost 108.65 points to end at 25,959.50.
Vinod Nair, Head of Research, Geojit Investments Limited, said that after a range-bound positive session, the market closed with a decline in the last half hour, led by Monday expiry, as Nifty50 indices could not survive above the key threshold of 26,000.
“Investor sentiment remained cautious, in anticipation of key event risk like delays in finalising the interim US-India trade agreement. Nonetheless, selective buying in IT stocks offered some support. On a brighter note, global markets remain optimistic, fuelled by renewed expectations of a December Fed rate cut, prompted by downside risks to U.S. employment data,” he added.
The top gainers were Tech Mahindra, which jumped 2.43%, followed by Asian Paints up 0.46%, HCLTech rising 0.35%, Infosys up 0.31%, and Adani Ports gaining 0.18%.
But the market mood turned weak as major stocks slipped sharply. The worst losers were BEL, which crashed 2.98%, Tata Steel falling 1.61%, Mahindra & Mahindra dropping 1.59%, UltraTech Cement down 1.18%, and Trent slipping 1.16%.
Ajit Mishra – SVP, Research, Religare Broking Ltd, said that the muted performance was driven by risk aversion amid global uncertainties and continued FII selling, which overshadowed domestic resilience.
“With the monthly expiry scheduled for Tuesday, volatility is likely to remain elevated. We expect the Nifty to hover within the 25,800–26,100 range. Meanwhile, participants should maintain a stock-specific approach and use dips or periods of consolidation to gradually accumulate quality names,” said Mishra.
