Sensex, Nifty fall as IT and metal stocks drag markets lower

The S&P BSE Sensex was down 73.48 points to close at 81,151.27, while the NSE Nifty50 lost 72.95 points to end at 24,781.10. 

In Short

• Metal, real estate, and IT stocks dragged indices down
• Mid and Smallcap segments saw significant losses
• Nifty Auto and Financial Services showed slight gains

Benchmark stock market indices closed lower on Monday, dragged by a decline in metal, real estate and IT stocks.

The S&P BSE Sensex was down 73.48 points to close at 81,151.27, while the NSE Nifty50 lost 72.95 points to end at 24,781.10.

Aditya Gaggar, Director of Progressive Shares, said that the markets commenced the week on a strong note under the guidance of the Banking counters but swiftly erased their gains as a steep fall was witnessed in the Mid and Smallcap segments and at one point of time, the Index was down over 170 points; however, in the last session, recovery was seen from the lower levels which helped the Index to settle the trade at 24,781.10 with a loss of 72.95 points.

"Barring Auto, all the other sectors ended the day with a loss where Media and Metal were the major laggards. After a pause of a day, Mid and Smallcaps extended their underperformance with a loss of 1.66% & 1.47% respectively. Bullish Divergence did not last for long as the Index formed a Dark Cloud Cover candlestick pattern on the daily chart indicating an upper hand of the Bears. The range is shifted lower to 24,570-25,000 and a breakout on either side will open doors for another 250-300 points move," he added.

Most sectoral indices faced selling pressure, with Nifty Media experiencing the steepest decline of 2.83%.

Among other major losers, Nifty Metal fell by 1.51%, while Nifty FMCG dropped 1.25%. The financial sector showed weakness with Nifty Private Bank declining 1.08% and Nifty PSU Bank falling 1.07%. Nifty Pharma slipped 1.00%, while Nifty Oil & Gas decreased by 1.24%. Real estate sector also felt the heat with Nifty Realty dropping 1.40%. Healthcare-related indices were in the red, with Nifty Midsmall Healthcare falling 0.36% and Nifty Healthcare Index declining 0.83%.

Nifty Consumer Durables lost 0.63%, while Nifty Bank shed 0.25%. Only two sectors managed to stay in positive territory - Nifty Auto showing resilience with a gain of 0.42%, and Nifty Financial Services posting a modest increase of 0.07%, though its subset Nifty Financial Services 25/50 was down 0.59%.

Ajit Mishra – SVP, Research, Religare Broking Ltd said that despite selective rebounds in heavyweight stocks, supported by earnings, most gains appear unsustainable, mainly to prevailing bearish sentiment.

"We may see consolidation in the current scenario in Nifty however the overall tone is expected to remain negative. Traders should maintain a stock-specific strategy, focusing on risk management," he added.