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Indian benchmark equity indices BSE Sensex and Nifty50 declined at market open on Monday, amid mixed global and domestic cues.
Stock Market Updates
Indian benchmark indices, Sensex and Nifty50, extended their losses for the second straight session on Monday, pressured by weak corporate earnings, uncertainty around US trade policies, and ongoing foreign fund outflows.
At the day’s low, the BSE Sensex was down by 763 points, or 1%, at 75,434, while the Nifty50 fell 240 points, or 1.04%, to 22,851 around 11:03 am.
By 1 PM, the BSE Sensex had fallen by 717.44 points, or 0.94%, to 75,473.02, while the Nifty50 stood at 22,863.20, down 229 points, or 0.99%.
Among the 30 stocks on the BSE Sensex, only six were trading in the green. ICICI Bank led the gainers with a 1.75% increase, followed by SBI, Hindustan Unilever, Asian Paint, UltraTech Cement, and Maruti Suzuki. On the other hand, Power Grid Corp. was the biggest loser, down 3.67%, followed by Zomato, Tech Mahindra, HCLTech, and Tata Motors.
On the Nifty50, ten stocks posted gains, with Britannia Industries seeing a 1.93% rise, followed by ICICI Bank, Hindustan Unilever, Larsen & Toubro, and Nestle India. Losses were led by BEL, which dropped 2.68%, followed by Power Grid Corp., HCLTech, JSW Steel, and Trent.
Sector-wise, the Media index suffered the most, falling 3.83%, followed by Pharma (-2.35%) and IT (-2.19%). Other notable decliners included the Nifty Metal (-1.78%), Consumer Durables (-1.68%), and Oil & Gas (-1.61%) indices. The Auto index was down by 0.89%, and the Bank, Financial Services, Private Bank, and Realty indices also ended lower.
The only sector in the green was the Nifty PSU Bank, which gained 0.12%.
In the broader market, losses were more pronounced, with the Nifty Midcap 100 down 2.25% and the Nifty Smallcap 100 losing 3.51%. India’s risk gauge, the India VIX, surged 7.36% to 17.98.
Global Cues
Markets in the Asia-Pacific region showed a mixed performance, with Australia, Taiwan, and South Korea closed for holidays. Japan’s Nikkei 225 dipped 0.33%, while the Topix gained 0.62%. Hong Kong’s Hang Seng index rose by 0.85%, while the CSI 300 saw a slight decline of 0.07%.
In the currency markets, the US dollar weakened on Friday, marking its worst week since November 2023, driven by reduced concerns over tariffs from the Trump administration. However, those worries resurfaced after Trump stated his intention to impose new measures on Colombia. Trump’s comments about a “friendly” conversation with President Xi Jinping and his belief that a trade deal with China could be reached gave mixed signals. The US dollar dropped by as much as 0.8% against a basket of currencies before reducing losses to close down 0.65%, ultimately posting its biggest weekly loss since November, down 1.8% from Monday.
Some analysts cautioned that the dollar could strengthen if the US changes its tariff or interest rate policies. On Monday, the dollar firmed as traders weighed the potential impact of Trump’s tariff plans, with the Federal Reserve expected to keep interest rates steady. The dollar index, which measures the US currency against six major currencies, stood at 107.6, still close to the one-month low it reached last week.
Global stocks had a lackluster session, with the MSCI world index little changed. US stocks showed similar weakness, with the S&P 500, Dow Jones, and Nasdaq all posting losses. Meanwhile, China’s stock markets and the yuan strengthened after Trump’s remarks, with the blue-chip index up 0.8% and the yuan gaining 0.7% to 7.239 against the dollar in offshore trading.
Oil prices stabilized after Trump mentioned that he would ask Saudi Arabia and OPEC to lower oil prices. US crude futures edged up to $74.66 a barrel, while Brent crude increased 0.3% to $78.50. Amelie Derambure, a senior portfolio manager at Amundi, noted that Trump’s pro-America policies, which call for lower oil prices, could benefit other global markets, including Europe. European stocks showed a slight boost, with the STOXX 600 rising 0.3%, driven by strong earnings from Burberry, though it later retreated to a flat finish.
