The Indian stock market’s woes deepened on Monday with benchmarks logging their fourth successive red opening, driven primarily by intense selling in the metal segment. This persistent downtrend signals investor jitters over cyclical slowdowns and international trade frictions.
Nifty Metal plunged 2.7% at open, with blue-chips like Adani Enterprises, Vedanta, and NALCO among the top drags. The sector’s affliction rippled across indices, pushing Nifty 50 down 0.8% to 24,320 and Sensex 0.7% lower to 80,150. Volume surged, indicating capitulation selling by leveraged positions.
Contributing factors abound: weekend data showed China’s manufacturing PMI contracting further, hammering base metal demand. Coupled with a robust US jobs report stoking Fed taper talks, risk assets worldwide faced headwinds. At home, monsoon delays raised agri-commodity concerns, indirectly hitting metals via infrastructure linkages.
Auto and realty sectors joined the fray, while IT majors like TCS and Infosys offered fleeting support. Midcaps outperformed slightly but still closed the morning in loss.
Brokerage views vary. Optimists see this as a buying dip in high-beta names; pessimists forecast prolonged consolidation. ‘Metals need global demand revival; until then, expect volatility,’ per a Motilal Oswal note. Critical supports at 24,200 (Nifty) loom large. As markets navigate this choppy phase, diversification and stop-losses are mantras for survival. The real test comes with Q2 earnings season.