Indian equity benchmarks opened on a flat note on Monday, with the Nifty 50 index falling 31 points or 0.14% to 23,482.80 in early trade, as weak global cues weighed on investor sentiment. The BSE Sensex was trading marginally higher, up 12 points at 77,200.10, amid mixed sectoral trends.
IT Stocks Drag, BEL Gains
Information technology stocks were among the top losers, with Infosys and TCS declining in early trade. Infosys shares fell 0.5%, while TCS dropped 0.3%, reflecting global tech sector weakness. On the other hand, Bharat Electronics Limited (BEL) emerged as a top gainer, rising 1.2% after the company announced a new order win. Other gainers included HDFC Bank and Reliance Industries, which provided some support to the benchmarks.
Weak Global Cues Impact Sentiment
Asian markets were trading lower, tracking overnight losses on Wall Street. Japan's Nikkei 225 fell 0.8%, while Hong Kong's Hang Seng index dropped 0.5%. Concerns over rising interest rates and geopolitical tensions weighed on investor appetite. According to analysts, the domestic market is likely to remain range-bound with a negative bias due to global headwinds.
Sectoral Performance
Among sectoral indices, the Nifty IT index was down 0.6%, while the Nifty Bank index was flat. The Nifty Pharma index gained 0.3%, supported by buying in Sun Pharma and Dr. Reddy's. The Nifty Auto index also edged higher, with Maruti Suzuki and Mahindra & Mahindra posting gains. However, the Nifty Metal index declined 0.4%, dragged by falling commodity prices.
Market breadth was slightly negative, with 1,350 stocks advancing and 1,420 declining on the BSE. The volatility index, India VIX, was up 2% at 13.5, indicating cautious sentiment.
Outlook
Market participants will closely watch the movement of the rupee and foreign fund flows for further direction. The rupee opened flat at 83.50 against the US dollar. According to market experts, the near-term trend remains cautious due to global uncertainties, but domestic fundamentals remain strong. Investors are advised to focus on quality stocks with strong earnings visibility.
