Indian benchmark indices faced a sharp decline in mid-day trading on Monday, , with the BSE Sensex plummeting 951.45 points or 1.11 per cent to 84,620.45 and the NSE Nifty50 dropping 270.80 points or 1.03 per cent to 25,908.15 as of 12.50 pm. The downturn is largely attributed to rising geopolitical tensions, particularly the intensification of Israeli strikes in Lebanon.
Shrey Jain, Founder and CEO of SAS Online, commented on the market situation, stating, “...Any dip toward the 25,500 to 25,400 range should be viewed as an opportunity to buy... On the upside, immediate resistance is noted at 25,920, with further hurdles at 26,000 and 26,200...”
The India VIX, a gauge of market volatility, surged by 6 per cent, signaling heightened uncertainty among investors. Stoxkart, a discount broker, noted in its mid-session update, “...Derivative data suggests hefty option writing by call writers at 26000, 26100 & 26200 strikes which indicates that bears are actively pressurising the markets overall...”
Major heavyweight stocks, including Reliance Industries, Infosys, TCS, and ICICI Bank, experienced significant sell-offs, contributing to the negative market sentiment. The broader market breadth remained bearish, with 2,314 stocks declining compared to 1,601 advances on the BSE.
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Among the top gainers on the NSE were JSW Steel (2.79 per cent), Hindalco (1.90 per cent), NTPC (1.79 per cent), Tata Steel (1.50 per cent), and Asian Paints (1.17 per cent). Conversely, the top losers included Hero MotoCorp (-4.08 per cent), Trent (-3.11 per cent), Reliance (-2.42 per cent), Bajaj Auto (-2.37 per cent), and Axis Bank (-2.32 per cent).
Sectoral indices also faced pressure, with Nifty Bank declining 736.80 points or 1.37 per cent to 53,097.50, and Nifty Financial Services dropping 344.40 points or 1.38 per cent to 24,563.55.
Market participants remain cautious ahead of crucial events, including a speech by Federal Reserve Chair Jerome Powell later today. Stoxkart added, “...We expect markets to remain under pressure in the second half of the day as well.”
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Despite the current downturn, some analysts maintain a cautiously optimistic outlook. As Jain suggested, “...This level represents a point of polarity where the index had previously consolidated...”
Investors will be closely monitoring global cues and domestic factors for further market direction in the coming sessions.