Stock markets opened on a cautious note on Monday, with benchmark indices swinging between gains and losses as investors assessed the latest quarterly results from major private lenders HDFC Bank and ICICI Bank.
Elevated crude oil prices amid rising tensions around the Strait of Hormuz also weighed on sentiment, limiting the market’s ability to extend last week’s rally.
The BSE Sensex was trading at 74,729.27 in the latest closing session on Friday, while the Nifty 50 had settled at 23,146.15. In early trade on Monday, the Nifty 50 was at 23,161.50, up 15.30 points or 0.07%, around 9:38 am.
The market opened amid mixed global cues after the Sensex and Nifty gained around 2.8% last week. Investors are now watching the December-quarter earnings season closely, with stock-specific moves likely to drive trading.
BANKING STOCKS IN FOCUS AFTER Q2 RESULTS
Shares of major lenders were mixed in early trade as investors assessed their latest quarterly performance. Axis Bank was the biggest Sensex loser in the latest stock snapshot, falling 3.61%, while HDFC Bank declined 1.35% and ICICI Bank slipped 0.74%.
On the other hand, State Bank of India rose 2.01%, making it the top gainer in the Sensex stock list. Other gainers included Adani Ports, up 1.32%; and HCLTech, up 1.04%.
IT stocks were mixed, with Larsen & Toubro, TCS and Infosys trading lower, while HCLTech gained. The Nifty IT index was down 0.21% in the latest snapshot.
BROADER MARKETS UNDER PRESSURE
The broader market was weaker than the benchmarks. The Nifty 100 declined 0.03%, the Nifty 200 fell 0.08% and the Nifty 500 slipped 0.14%.
Mid- and small-cap stocks also remained under pressure. The Nifty Midcap 50 fell 0.19%, the Nifty Midcap 100 declined 0.25% and the Nifty Smallcap 100 dropped 0.48%.
Sectoral performance was mixed. The Nifty PSU Bank index rose 2.49%, while the Nifty Pharma index gained 0.68% and the Nifty Healthcare index advanced 0.56%. The Nifty Auto and Oil & Gas indices also traded higher.
However, private banks fell 1.30%, while financial services declined 0.39%. FMCG, realty and chemicals stocks were also lower. India VIX, a gauge of expected market volatility, rose 3.44% to 14.55.
CRUDE OIL, HORMUZ TENSIONS REMAIN KEY RISKS
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the momentum from last week’s 2.8% surge in the Nifty and strong results from banking majors, following better-than-expected IT earnings, could help markets remain resilient.
However, he warned that escalating tensions around the Strait of Hormuz and Brent crude rising to $109 a barrel could act as a strong headwind.
Vijayakumar said attractive large-cap valuations and the rupee’s appreciation had made India’s market outlook somewhat more favourable for foreign institutional investors, but sustained high crude prices could limit the durability of those flows.
He added that large-cap stocks were likely to outperform mid- and small-cap shares, with trading this week expected to be driven by company-specific reactions to quarterly results.
Investors will track further quarterly earnings, crude oil prices, developments around the Strait of Hormuz and foreign investor activity for direction. With the broader market lagging the benchmarks, the near-term trend may remain selective, with individual stocks reacting sharply to earnings and management commentary.
