Benchmark stock market indices erased early gains to close marginally lower on Monday in a highly volatile trading session, as the Sensex and Nifty oscillated between gains and losses throughout the day. Investors remained cautious amid global trade uncertainties, mixed corporate earnings, and concerns over inflation, leading to subdued market sentiment.
The S&P BSE Sensex ended the day at 73,176.25, shedding 21.85 points or 0.03% after witnessing multiple intraday swings. Meanwhile, the NSE Nifty50 slipped 5.40 points or 0.02% to close at 22,119.30. Despite starting on a positive note, both indices struggled to maintain their momentum, ultimately finishing slightly in the red. The choppy movement reflected traders' hesitation amid conflicting global and domestic cues.
According to Vinod Nair, Head of Research at Geojit Financial Services, the market showed resilience by recovering from its intraday low due to improving economic growth indicators, a rebound in consumption expenditure, and a healthy expansion in the agricultural sector. These factors helped sustain investor confidence despite persistent market volatility.
“Market valuations are approaching oversold levels, indicating that domestic indicators suggest a potential for a rebound in the near term. However, the sustainability of this recovery remains uncertain, largely dependent on easing global trade uncertainties, which so far show limited signs of improvement,” Nair said.
Among the top gainers in the session, Bharat Electronics Limited (BEL) stood out, surging 4.57% on the back of strong institutional buying and positive sentiment in the defense sector. Grasim Industries followed with a robust climb of 3.18%, benefiting from upbeat expectations for its upcoming quarterly results. Eicher Motors also showed remarkable strength, advancing 2.94% as demand for premium motorcycles and commercial vehicles remained strong. JSW Steel, buoyed by rising global steel prices and strong production numbers, added 2.68% to its value, while Bharat Petroleum Corporation Limited (BPCL) closed with a 2.23% increase, supported by firm crude oil prices and expectations of improved refining margins.
On the downside, Bajaj Auto led the list of decliners with a 2.44% drop, as investor sentiment remained weak in the auto sector due to demand concerns in key export markets. Coal India also faced selling pressure, declining 2.37% amid worries about falling coal prices and weaker demand from power producers. Index heavyweight Reliance Industries slipped 2.17%, dragging the broader market lower as profit-booking set in after recent gains. Bajaj Finserv lost 1.73% as investors adopted a cautious stance on financial stocks, while HDFC Bank continued its downward trend, losing 1.67% amid concerns about its asset quality and slower-than-expected loan growth.
From a sectoral perspective, Realty and Metal stocks emerged as the strongest performers, showing resilience despite the broader market volatility. Realty stocks saw renewed buying interest, supported by strong residential sales data and increased investment in the sector. Meanwhile, metal stocks gained on expectations of higher demand and firm commodity prices. In contrast, the Media segment suffered the most, registering a decline of over 1% as investors rotated out of media-related stocks amid concerns about sluggish advertising revenue growth.
Aditya Gaggar, Director of Progressive Shares, noted that the broader market reflected mixed trends, with Midcap stocks outperforming by closing in positive territory, while Smallcaps moved in line with the Frontline Index, reflecting overall cautious investor sentiment.
Looking ahead, market participants will closely watch key economic data releases, global trade developments, corporate earnings reports, and policy decisions from major central banks, which could play a significant role in determining the near-term direction of the indices. With continued uncertainty in global markets, investors may remain selective in their stock picks, focusing on fundamentally strong sectors that demonstrate resilience in volatile conditions.
Analysts also believe that the upcoming RBI monetary policy review and inflation data will be key drivers for the market. Any indication of a change in interest rate stance or inflation trends could significantly impact investor sentiment. Additionally, the movement of foreign institutional investors (FIIs) and domestic institutional investors (DIIs) will be closely monitored as they continue to play a crucial role in influencing market trends.
Despite the subdued closing, experts suggest that the markets remain in a consolidation phase, and a breakout on either side could dictate the trend in the coming sessions. Traders and investors are advised to exercise caution and adopt a stock-specific approach, keeping an eye on global developments, corporate earnings, and macroeconomic trends.
