Markets turn volatile after strong opening, consumer stocks drag
Indian equity benchmarks reversed early gains to trade lower in afternoon trading on Monday, as selling pressure in consumer stocks offset strength in healthcare and metal counters. The BSE Sensex fell 225.44 points or 0.29% to 78,358.37, while the NSE Nifty declined marginally by 19.30 points or 0.08% to 23,719.95 around 12:51 PM.
The broader market, however, displayed resilience, with the Nifty Midcap Select index gaining 1.16% and the Nifty Next 50 advancing 0.83%. Market breadth remained positive, with 2,619 stocks advancing compared to 1,171 declines on the BSE, while 177 stocks remained unchanged.
Healthcare major Apollo Hospitals emerged as the top gainer on the NSE, rising 2.84%, followed by metal producer Hindalco which added 2.52%. ITC Hotels, BPCL, and Trent rounded out the top gainers, advancing 2.39%, 2.07%, and 1.83% respectively.
Consumer stocks faced significant selling pressure, with Asian Paints leading the losers, dropping 3.19%. Other notable decliners included Titan (-2.77%), Nestlé India (-2.41%), ITC (-1.38%), and Bajaj Finserv (-1.34%).
The banking and financial services sectors showed mixed performance. The Nifty Bank index was up 0.50% to 50,410.25, while the Nifty Financial Services index gained a modest 0.29% to 23,688.15.
Market activity remained robust, with 244 stocks hitting their upper circuit limits and 182 stocks touching their lower circuits. Fifty-two stocks reached their 52-week highs, while 48 stocks hit their 52-week lows, indicating balanced market sentiment.
Earlier in the day, markets had opened higher, building on the positive momentum from foreign institutional investors turned net buyers after 23 consecutive sessions of selling. The initial optimism was supported by improving US-China trade relations and expectations surrounding the upcoming Reserve Bank of India policy decision.
As trading progresses, market participants continue to monitor the RBI’s monetary policy meeting outcome. Some analysts anticipate potential rate adjustments following the Union Budget’s focus on boosting consumption. The volatile trading pattern suggests investors are reassessing positions ahead of these key events while maintaining a cautiously optimistic outlook.
