In the wake of profit-taking across various sectors including IT, metal, and consumer durables, the benchmark Sensex witnessed a decline of 352 points for the second consecutive session on Monday. This downturn was exacerbated by weak global trends affecting market sentiment.
The 30-share BSE index closed at 72,790.13 points, marking a decrease of 352.67 points or 0.48 percent from the previous session's close. Among its constituents, 26 stocks experienced declines while only four managed to advance.
Similarly, the broader Nifty index of the NSE also ended the day in the red, dropping by 90.65 points or 0.41 percent to reach 22,122.05 points. Notably, 37 stocks within the Nifty index closed lower.
Leading the decline were heavyweight stocks such as Infosys, TCS, ICICI Bank, and Reliance Industries, contributing to the negative trajectory of the benchmark indices for the second consecutive day. Concerns over rising competition in the domestic paints market, especially with the entry of Grasim Industries, led to a significant drop in Asian Paints shares.
Furthermore, IT stocks, including Infosys, TCS, HCL Tech, Wipro, and Tech Mahindra, continued their downward trend amid inflation worries in the US market. On the other hand, Larsen & Toubro emerged as the top gainer, followed by Power Grid, HUL, and Nestle.
Market analysts attributed the market's retreat to a shift in investor focus from earnings to economic indicators, such as the US and India GDP data and eurozone inflation figures. The uncertainty surrounding demand and high US inventory levels also contributed to the decline in oil prices.
In terms of sectoral performance, BSE Metal and BSE Consumer Durables were the biggest losers, while BSE Utilities and BSE Power registered gains. Despite the underperformance of banking majors, rotational buying in other heavyweight stocks helped mitigate some of the losses.
Overall market breadth was negative, with more declining stocks compared to gainers. Foreign Institutional Investors (FIIs) remained net buyers on Friday, purchasing securities worth Rs 1,276.09 crore.
Meanwhile, global markets mostly traded lower, with Asian markets experiencing declines and European shares also trading in negative territory. Oil benchmark Brent Crude dropped to USD 76.11 per barrel in futures trade.
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