The benchmark equity indices opened strong on Monday and hit fresh lifetime highs in early trade, buoyed by better-than-expected GDP growth in the second quarter of the current fiscal. However, profit booking at higher levels pulled the indices lower, and they settled with modest losses. Investor sentiment also weakened as the Indian rupee hit a fresh lifetime low of 89.78 against the US dollar.
The Sensex opened 359.25 points higher and touched a new record high of 86,159.02, but later succumbed to profit booking, slipping 517.12 points from the day’s high. It eventually closed at 85,641.90, down 64.77 points or 0.08% compared to the previous close.
What did Vinod Nair say?
“After reaching a new high, the market moved into a range-bound phase as expectations of an RBI rate cut in December faded following better-than-expected Q2 GDP growth and a sharp depreciation of the rupee,” said Vinod Nair, Head of Research, Geojit Financial Services.
Sentiment turned slightly cautious due to muted GST collections in November, driven by lower rates. Meanwhile, the auto index outperformed, supported by strong November sales aided by GST rationalisation, benign inflation, and robust wedding-season demand, Nair added.
After opening 122.85 points higher, the Nifty hit a new record high of 26,325.80 but later erased all gains, falling 150.05 points from the day’s peak. It settled below the 26,200 mark at 26,175.75, down 27.20 points or 0.10%.
The Sensex and Nifty are now 194 points and 40 points away, respectively, from their record closing highs of September 2024.
What do analysts say?
“Nifty closed with a bearish candlestick on Monday’s session, marking the third consecutive weak close and indicating extended consolidation at higher levels along with selling pressure,” said Vatsal Bhuva, Technical Analyst at LKP Securities.
Additionally, call writing at 26,200 and 26,300 suggests that the index may trade sideways in the short term with a mild bearish undertone. Immediate support is placed at 26,100, with resistance at 26,300, while positional support stands at the 26,000 level, he added.
Overall market breadth remained negative as 2,405 stocks declined against 1,836 gainers on the BSE. Among the broader indices, the BSE Midcap fell 0.19%, while the BSE Smallcap posted a modest gain of 0.05%.
Foreign portfolio investors sold shares worth ₹1,171.31 crore, while domestic institutional investors purchased equities worth ₹2,558.93 crore on Monday, according to provisional BSE data.
Investors’ wealth rose by ₹16,892 crore to ₹474.53 lakh crore.
Sectorally, realty, healthcare, consumer durables, services, and telecom were the top laggards, falling up to 1.02%, while auto, metal, and IT were the top gainers, rising up to 0.80%.
Among Sensex constituents, Bajaj Finance, Sun Pharma, Trent, SBI, and Bajaj Finserv were the top losers, declining up to 1.65%, while Tata Motors Passenger Vehicles, Maruti Suzuki, BEL, Kotak Mahindra Bank, and HCL Tech were the top gainers, rising up to 1.93%.