The mood on Indian bourses turned somber at open on Monday, with the Sensex diving nearly 200 points and extending its losing streak to three days. This bearish start highlights investor wariness as external shocks collide with internal challenges.
The index opened at 81,520, down 178 points or 0.22%, while Nifty eased to 24,795, off 52 points. Friday’s 1.2% plunge had already set a precarious tone, erasing gains from a four-week uptrend.
Key pressures include spiking global energy costs from regional conflicts, which could fan imported inflation. Domestically, patchy earnings season and RBI’s impending rate decision are prompting caution.
Sell-off was broad-based: PSU banks and midcaps led declines, with names like Canara Bank and Yes Bank dropping 2%. Cement and infra plays weakened on margin worries.
Defensives shone through: UltraTech Cement and Asian Paints posted gains, drawing safe-haven flows.
Flow data reveals FIIs as net sellers to the tune of ₹15,000 crore monthly, offset partially by DII buying. Advance-decline ratio favored bears at 1:2.
Outlook mixed: Short-term bearish, but long-term bulls intact on consumption rebound. ‘Use volatility for stock picking in beaten sectors,’ advises an equity head. With corporate heavyweights reporting this week, the market’s resilience will be tested.