Mumbai: Indian stock markets started the week on a weak note, continuing their downward trend on Monday as investors reacted to muted third-quarter (Q3) earnings. Both benchmark indices opened in the red, reflecting market caution and global pressures.
The Nifty 50 index opened at 22,609.35, falling by 186.55 points or 0.82 per cent, while the BSE Sensex opened at 74,893.45, recording a decline of 417.61 points or 0.55 per cent.
Analysts believe that the lackluster corporate earnings for Q3 have failed to boost investor confidence, adding to concerns over high valuations and global market trends. The premium of Indian stocks compared to the MSCI World Index and other global markets has reduced, indicating a shift in sentiment.
Ajay Bagga, Banking and Market Expert told ANI "The Q3 earnings in India have proved to be muted and are not providing a needed boost to market sentiment. Valuations have come down, and the premia of Indian markets versus MSCI World and other country markets is now much lower. Caution remains as most brokerages have turned negative on the outlook for the next two quarters".
He further added "Momentum analysts are watching key supports being broken with worry, but fundamental analysts are switching to buying stocks and sectors which are now available at fair to low valuations".
All major sectoral indices were under pressure. Nifty Metal declined by more than 1.3 per cent, while Nifty Bank was down by 0.62 per cent. Nifty Auto and Nifty Realty also dropped by over 1.12 per cent. Overall, 42 out of the 50 stocks in the Nifty 50 index opened with losses, while only eight stocks showed gains.
Among the top gainers in the Nifty 50 index were Dr. Reddy's, Sun Pharma, and Maruti Suzuki. On the other hand, the biggest losers included Bharat Electronics Limited (BEL), Trent, Oil and Natural Gas Corporation (ONGC), and HCL Technologies.
"Despite the Nifty 50 index sustaining above the crucial support of 22,750 to 22,800, the Indian stock market has remained under the bears' grip for the last thirteen straight sessions. The Indian stock market is declining due to weak global market sentiment. Fears of a trade war and economic uncertainty have been heightened by Trump's tariff policies. Heavy selling by Foreign Institutional Investors (FIIs) is also contributing to the downturn, influenced by rising bond yields and a strong dollar" said Sunil Gurjar, SEBI Registered Research Analyst, Founder- Alphamojo Financial Services.
The weakness in Indian markets was in line with broader Asian market trends. At the time of reporting, major indices across Asia were also experiencing declines. Taiwan's Weighted Index fell by more than 0.69 per cent, South Korea's KOSPI index declined by 0.64 per cent, and Japan's Nikkei 225 remained closed for a holiday.
Investors are closely watching upcoming corporate earnings reports and global market movements for further cues on market direction. With valuations coming down and uncertainty prevailing, market sentiment remains cautious in the near term. (ANI)