Indian stock markets commenced the week on a sluggish note, extending their downward trajectory on Monday as investors reacted to lacklustre third-quarter (Q3) earnings. Both benchmark indices opened in the red, reflecting caution amid concerns over global market trends and high valuations.
The Nifty 50 index opened at 22,609.35, shedding 186.55 points or 0.82 per cent, while the BSE Sensex began trading at 74,893.45, registering a decline of 417.61 points or 0.55 per cent.
Analysts attribute the weak performance to uninspiring corporate earnings for Q3, which have failed to buoy investor confidence.
The declining premium of Indian equities compared to the MSCI World Index and other global markets indicates a perceptible shift in sentiment.
Banking and Market Expert, Ajay Bagga remarked, “The Q3 earnings in India have proved to be muted and are not providing a needed boost to market sentiment. Valuations have come down, and the premia of Indian markets versus MSCI World and other country markets is now much lower. Caution remains as most brokerages have turned negative on the outlook for the next two quarters.”
“Momentum analysts are watching key supports being broken with worry, but fundamental analysts are switching to buying stocks and sectors which are now available at fair to low valuations," he further stated.
All major sectoral indices remained under pressure, with Nifty Metal declining by over 1.3 per cent, while Nifty Bank fell by 0.62 per cent.
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Nifty Auto and Nifty Realty also witnessed losses exceeding 1.12 per cent. Of the 50 stocks in the Nifty 50 index, 42 opened with losses, while only eight posted gains.
Among the top gainers were Dr. Reddy’s, Sun Pharma, and Maruti Suzuki, whereas Bharat Electronics Limited (BEL), Trent, Oil and Natural Gas Corporation (ONGC), and HCL Technologies emerged as the biggest laggards.
Sunil Gurjar, SEBI-registered Research Analyst and Founder of Alphamojo Financial Services, explained, “Despite the Nifty 50 index sustaining above the crucial support of 22,750 to 22,800, the Indian stock market has remained under the bears’ grip for the last thirteen straight sessions. The Indian stock market is declining due to weak global market sentiment. Fears of a trade war and economic uncertainty have been heightened by Trump’s tariff policies. Heavy selling by Foreign Institutional Investors (FIIs) is also contributing to the downturn, influenced by rising bond yields and a strong dollar.”
The weakness in Indian equities mirrored broader Asian market trends.
At the time of reporting, Taiwan’s Weighted Index had declined by over 0.69 per cent, South Korea’s KOSPI index had dropped by 0.64 per cent, while Japan’s Nikkei 225 remained closed for a holiday.
Investors are closely monitoring forthcoming corporate earnings reports and global market movements for further indications of market direction. With valuations retreating and uncertainty prevailing, sentiment is likely to remain cautious in the near term.
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