The Indian stock market opened on a subdued note on Monday, with the Sensex and Nifty experiencing marginal declines as investors digested mixed economic signals and awaited key policy developments.
The Sensex opened slightly lower at 79,743.87 from its previous close of 79,802.79 and has continued to decline, trading at 79,675.32 as of 9.40 am, down by 127.47 points or 0.16 per cent.
Similarly, the Nifty opened marginally higher at 24,140.85 compared to its previous close of 24,131.10 but is currently at 24,123.20, slipping by 7.90 points or 0.03 per cent.
The market’s sentiment was tempered by the recent GDP data revealing a slowdown in economic growth to 5.4 per cent in the second quarter, which was lower than economists’ expectations.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted, “The Q2 GDP shocker of 5.4 per cent will weigh on markets but the impact is unlikely to be big since part of the declining growth was factored-in by the market.”
Despite the cautious start, certain sectors showed resilience. Auto stocks emerged as a key focus area, with companies like Maruti (up 1.87 per cent), TVS Motor, Eicher Motors, and Tata Motors reporting strong November sales. The government’s plan to broaden electric vehicle incentives is expected to provide additional support to the sector.
Pharma stocks also showed promise, with Sun Pharma gaining 1.09 per cent. Industry reports suggest the pharmaceutical sector could grow by 58 per cent to reach $130 billion in the coming years.
“Segments like pharma, telecom and digital companies, which are not impacted by the slowdown can be bought on declines,” Vijayakumar advised.
The upcoming Reserve Bank of India (RBI) credit policy on Friday is drawing significant attention. Experts anticipate a potential CRR (Cash Reserve Ratio) cut to support economic growth. “The MPC is unlikely to cut rates when CPI inflation is running at 6.2 per cent. CRR cut will be positive for banks and, therefore, banking stocks are likely to be resilient,” Vijayakumar added.
Global markets provided a mixed backdrop. The US markets reached record highs, with the S&P 500 and Dow Jones lifted by technology stocks and optimism about fourth-quarter corporate profits. The US 10-Year bond yield dropped to a one-month low of 4.17 per cent, fueling hopes of a potential interest rate cut.
Top gainers included Shriram Finance (1.93 per cent), Apollo Hospitals (1.12 per cent), and Grasim (1.09 per cent), while top losers comprised HDFC Life (-1.20 per cent), IndusInd Bank (-1.12 per cent), and ONGC (-1.09 per cent).
The commodities market showed interesting movements. Gold prices stabilized around $2,635 an ounce, supported by a falling dollar index and geopolitical tensions. Brent Crude declined 2 per cent to below $72 per barrel, aided by a ceasefire between Israel and Hamas.
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Investors are also keeping a close eye on the Goods and Services Tax (GST) collections, which grew 8.5 per cent year-on-year to ₹1.82 lakh crore in November. Prashanth Tapse from Mehta Equities noted, “The market remains buoyant due to strong domestic investor sentiment, despite concerns over slowing GDP growth.”
The market’s immediate focus remains on the RBI’s monetary policy, global economic indicators, and upcoming US non-farm payrolls data. As the day progresses, investors will be monitoring sector-specific performances and global market cues.