What Caused the Dip in Sensex and Nifty? Insights from Today's Market Trends
Market Overview
Mumbai: The equity market saw a decline on Monday, with major indices Sensex and Nifty falling due to pressure from leading companies like HDFC Bank, Reliance Industries, and various IT stocks. This downturn coincided with new tariff warnings from the United States directed at India.
The BSE Sensex, which consists of 30 shares, fell by 322.39 points, or 0.38%, closing at 85,439.62. At one point, it had dropped as much as 446.68 points, reaching a low of 85,315.33.
Meanwhile, the NSE Nifty, which is a 50-share index, reached an all-time high of 26,373.20 during the session but ultimately closed down by 78.25 points, or 0.30%, at 26,250.30.
Among the 30 companies listed on the Sensex, notable losers included HDFC Bank, Infosys, HCL Technologies, Bajaj Finance, Tata Consultancy Services, and Reliance Industries.
Conversely, stocks such as Bharat Electronics, Hindustan Unilever, Tata Steel, and UltraTech Cement managed to gain ground.
Despite the Nifty index hitting a new peak, profit-taking led to a decline, testing the significant support level of 26,200 by the end of the trading day.
Market sentiment appeared cautious, with many investors remaining on the sidelines due to rising geopolitical tensions following a recent US military action in Venezuela, as noted by Ashika Institutional Equities.
Data from exchanges indicated that Foreign Institutional Investors (FIIs) purchased equities worth Rs 289.80 crore on Friday, while Domestic Institutional Investors (DIIs) bought stocks valued at Rs 677.38 crore.
Ponmudi R, CEO of Enrich Money, highlighted that President Trump's comments regarding potential tariff increases on Indian imports, particularly in relation to India's ongoing purchases of Russian oil, added to the geopolitical uncertainty, affecting market risk appetite.
In the Asian markets, South Korea's Kospi, Japan's Nikkei 225, and Shanghai's SSE Composite indices all closed significantly higher, while Hong Kong's Hang Seng index saw a slight increase.
European markets were also trading positively, and US markets finished mostly in the green on Friday.
Brent crude oil prices fell by 0.13% to USD 60.67 per barrel.
On the previous Friday, the Sensex had risen by 573.41 points, or 0.67%, closing at 85,762.01, while the Nifty increased by 182 points, or 0.70%, to reach 26,328.55.