New Delhi: The benchmark stock market indices experienced a decline on Monday, primarily due to a drop in banking stocks.
At 10 am, the S&P BSE Sensex was down 76.37 points to 79,920.23, while the NSE Nifty50 fell 15 points to trade at 24,308.85. In early trade, most of the other broader market indices were trading within a specific range as volatility surged.
Additionally, among the sectoral indices, the Nifty Bank and Nifty Financial Services with higher weightage were trading in negative territory, while Nifty Consumer Durables emerged as the top loser. Notable gainers on the Nifty50 included Tata Consumer Products, Nestle India, Tata Motors, HUL, and HDFC Life, whereas the top losers consisted of Titan, Divi’s Lab, Shriram Finance, Adani Ports, and BPCL.
Regarding individual stocks, Bank of Baroda witnessed a nearly 3% decline in its shares after sharing its Q1 business update. Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, expressed the view that positive news flows could provide resilience to the market in the near term. He also mentioned that the US market’s bullish sentiment would be supported by the latest weak yet better-than-expected jobs data for June, which reported 2,06,000 jobs.
Furthermore, he added that the market’s response to the Q1 results, which are expected to start coming in this week, would be crucial. According to Vijayakumar, financials have the potential to move up further in response to the anticipated good results, showing signs of improvement.
Additionally, autos are expected to continue displaying improved results, while the FMCG segment, despite suffering from low volume growth, is showing indications of mild recovery. Vijayakumar suggested keeping an eye on this segment.
