Indian equity indices opened Monday’s trading session on a lower note but later came off intra-day lows. The NSE Nifty 50 was trading 15 points, or 0.08%, lower at 22,914, while the BSE Sensex recouped from the day’s low trading down 95 points, or 0.12%, at 75,844.
Bank Nifty was down 262 points or 0.53% lower at 48,837.15. The Nifty Midcap 100 shed 364 points, or 0.74%, at 49,290.45.
M&M, Tata Steel, Hero MotoCorp, ICICI Bank, and HDFC Life Insurance were the major losers in the Nifty 50. On the flip side, Sun Pharma, Cipla, Asian Paints, Bajaj Finserv, and Tata Motors were the top gainers in the Nifty 50.
Among the sectoral indices, the Nifty Pharma and Healthcare indices outperformed other indices, up by around 0.4%.
“The fact is that a modest single-digit earnings growth doesn’t deserve high valuations. This is the basic reason behind the relentless FII selling which has impacted the market. Appreciating dollars aggravated the problem,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. Only indications of an earnings recovery and a declining dollar can reverse the weakening market trend. This may happen soon.
Talking on the technical part, Akshay Chinchalkar, Head of Research at Axis Securities, said the three-day drop in the Nifty is very similar to a formation that was seen at the March 2023 lows, which kicked off a multi-month bull market. “The fact that the pattern is occurring in the area where the COVID-era trendline is passing through makes the 22,700-22,800 area pivotal to the next big move. Any recovery attempt will face resistance between 23,050 and 23,150,” he added.
Moving further, “Nifty needs to break above 24,051 (its 200 DMA) to confirm strength. Positives include Russia-Ukraine peace prospects, falling oil prices, a weaker US Dollar, and RBI’s rate cuts. However, FIIs have been net sellers in 2025, with Rs 1.16 lakh crore pulled out, raising concerns,” said Prashanth Tapse, Senior Vice President of Research at Mehta Equities.
Apart from that, the gold rate today has seen a sharp fall, declining 1.3% in a week. The cost of gold today is Rs 84,880 in India. A week ago, the price of gold was Rs 86,000/10 grams.
While the 22 kt gold rate today is Rs 77,807. The 18 carat gold price today is Rs 63,660 in India.