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Due to decline in service and realty stocks and continuous withdrawal of foreign funds, major stock market indices Sensex and Nifty opened in the red in early trade on Monday. The 30-share BSE Sensex fell 316.52 points, or 0.37 per cent, to 85,395.85 in morning trade. The 50-share NSE Nifty fell 106.70 points, or 0.41 percent, to 26,079.75. In early trade, the rupee fell by 16 paise against the US dollar to Rs 90.11 per dollar.
Condition of Sensex companies
Among the Sensex companies, Bajaj Finance, Bharat Electronics Limited, Axis Bank, Bajaj Finserv, Maruti Suzuki India, Asian Paints, Mahindra & Mahindra, NTPC, ICICI Bank, PowerGrid, Hindustan Unilever and Larsen & Toubro were among the laggards. At the same time, shares of Tech Mahindra, Infosys, Eternal, Reliance Industries, Tata Motors Passenger Vehicles, Tata Consultancy Services, Trent, HCL Technologies and Tata Steel registered gains.
RBI’s decision is a strong signal for the market
VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd, said emerging positive and negative news have the potential to maintain market volatility in the near future. Signs of strong economic growth and improving earnings growth are supportive for the markets.
The large fiscal and monetary stimulus provided to the economy this year has contributed to the sharp improvement in GDP growth, as evidenced by the 8.2 percent GDP growth rate in the second quarter. RBI revising the GDP growth estimate for FY 2026 to 7.3 percent is a good sign for the market.
He said low inflation resulting in low GDP deflation has impacted nominal GDP growth and corporate earnings growth. But it is clear from key indicators that around 15 per cent earnings growth is achievable in FY27. This is positive for the market.
Continuous decline in rupee may have an impact
Vijayakumar said that, however, there are some negative things which can affect the market. Due to continuous fall in rupee, FIIs are continuously selling in the market.
Mixed situation seen in Asian markets
In Asian markets, Japan’s Nikkei 225, Shanghai’s SSE Composite index and South Korea’s Kospi were trading in the green zone, while Hong Kong’s Hang Seng index was trading in the red zone. American markets closed with gains on Friday.
Investors keep an eye on Fed’s decisions
Devarsh Vakil, Head of Prime Research, HDFC Securities, said US stock markets posted modest, broad-based gains last week, supported by soft inflation data and strong macroeconomic indicators, which kept expectations of a Federal Reserve cut in interest rates. He said investors are remaining cautious ahead of the upcoming Federal Open Market Committee (FOMC) meeting, the release of excess inflation and year-end portfolio adjustments.
The price of Brent crude increased to 63.83 per barrel.
Global oil benchmark Brent crude rose 0.13 percent to $63.83 a barrel. Meanwhile, foreign institutional investors (FIIs) sold shares worth Rs 438.90 crore on Friday, while domestic institutional investors (DIIs) bought shares worth Rs 4,189.17 crore, according to exchange data. On Friday, the 30-share BSE Sensex closed 447.05 points higher at 85,712.37, while the 50-share NSE Nifty closed 152.70 points higher at 26,186.45.
