The Indian equity markets wrapped up Monday’s session in the green, but the finish was far from smooth. After opening firm and sustaining momentum through the morning, a wave of late selling trimmed the benchmarks. The Nifty 50 managed to close 32 points higher at 24,773, while the Sensex advanced 75 points to settle at 80,787. Both indices gave up a large part of their intraday strength, underscoring the prevailing caution among investors.
The banking index moved broadly in line with the market, with the Nifty Bank closing 72 points higher at 54,187. However, the broader market displayed mixed trends. Midcap stocks ended in the red, with the BSE Midcap slipping 150 points, while small-cap counters also struggled, finishing 158 points lower. This divergence indicated selective buying rather than broad-based participation.
Auto and ancillary stocks once again led the charge, gaining on expectations of robust demand after the recent Goods and Services Tax rate cuts. Tata Motors emerged as the top gainer in the Nifty, soaring more than four percent. Bajaj Auto, Mahindra and Mahindra, Eicher Motors, and JSW Steel also posted solid gains, adding to the positive sentiment in cyclicals.
In contrast, the information technology pack remained a drag. Despite global markets cheering softer United States jobs data, which boosted hopes of an imminent interest rate cut by the Federal Reserve, Indian IT majors struggled. Investors remained wary of uncertainties in global spending, which continues to weigh on the sector.
Trent was the biggest loser of the day, falling nearly four percent, followed by Asian Paints, Dr Reddy’s Laboratories, Coal India, and Nestle India. The weakness in defensives highlighted profit booking as investors rotated money toward cyclicals.
Sector-wise, the electronics space performed strongly, with a sharp jump in market capitalization. Automobiles and electric vehicle-related stocks also added to the momentum. On the flip side, fertiliser stocks bore the brunt of selling, slipping significantly by close.
The performance of business groups added another layer of intrigue. The Jaypee Group saw gains in market capitalization, while the Adventz Group faced steep declines, with Paradeep Phosphates sliding more than eight percent. These movements pointed to heightened volatility across select business conglomerates.
Analysts observed that the market continues to move in a buy-on-dips and sell-on-rallies pattern. While foreign institutional inflows, domestic liquidity, and global cues remain supportive, investors are treading cautiously given the looming uncertainties surrounding crude oil prices and geopolitical risks. Rising crude prices following renewed concerns over sanctions on Russian oil further added to the unease. Meanwhile, gold continued to strengthen as investors sought safe-haven assets amid trade-related tensions.
Despite the late dip, the overall market tone remained cautiously optimistic. Auto, metal, and consumer-driven sectors are expected to benefit in the near term, particularly ahead of the festive season. However, the underperformance of IT and select defensive names is likely to keep traders on their toes in the coming sessions.
Follow You Finance on Instagram and Facebook for daily insights on stock markets, sector trends, and financial strategies to help you stay ahead in your investment journey.
