Indian equity benchmarks opened deep in the red on Monday, extending losses from the previous session, as weak global cues and rising crude oil prices dampened investor sentiment. The BSE Sensex plunged over 500 points in early trade, while the NSE Nifty slipped below the 17,500 mark.
Market Performance
The 30-share BSE Sensex was trading at 58,500.23, down 523.45 points or 0.89 percent, at 9:25 am. The broader NSE Nifty fell 153.25 points or 0.87 percent to 17,447.35. Most sectoral indices were in the red, with metal, banking, and auto stocks leading the decline.
Key Draggers
Among the Sensex constituents, Tata Steel, IndusInd Bank, Bajaj Finserv, and Maruti Suzuki were the top losers, shedding up to 2.5 percent. Only a few stocks, including Dr Reddy's Labs and Nestle India, managed to trade in the green.
Global Cues Weigh
Asian markets were trading lower on Monday, tracking a sell-off on Wall Street after US jobs data fueled fears of aggressive rate hikes by the Federal Reserve. Japan's Nikkei 225 fell 1.2 percent, while China's Shanghai Composite dropped 0.6 percent. Hong Kong's Hang Seng index also declined over 1 percent.
Oil Prices Spike
Crude oil prices surged on Monday, with Brent crude crossing the $94 per barrel mark, amid supply concerns and geopolitical tensions. Rising oil prices pose a threat to India's fiscal health and can stoke inflation, impacting corporate margins and consumer spending.
Expert Views
Market analysts said that the near-term outlook remains cautious due to global headwinds. "Investors are worried about the impact of rising interest rates and commodity prices on economic growth. The market may remain volatile in the coming sessions," said a senior analyst at a domestic brokerage.
Technical indicators suggest that the Nifty may find support around the 17,300 level, while resistance is seen at 17,700. Traders are advised to adopt a stock-specific approach and focus on quality names.
Rupee Weakens
The Indian rupee also weakened against the US dollar, trading at 82.65 per dollar, down 0.12 percent from the previous close. The depreciation of the rupee adds to the pressure on import-dependent sectors, including oil and gas.
Overall, the market breadth was negative, with 1,876 stocks declining and 1,024 advancing on the BSE. The volatility index, India VIX, surged 5 percent, indicating heightened uncertainty among traders.
