Mumbai’s bustling stock exchanges kicked off trading with another disappointing session on Monday, marking the fourth consecutive day of declines as the bell rang. The Sensex and Nifty, barometers of India’s equity market health, opened sharply lower amid persistent global uncertainties and domestic pressures.
The metal sector bore the brunt of the sell-off, with the Nifty Metal Index plunging over 2.5% at the opening bell. Heavyweights like Tata Steel, Hindalco, and JSW Steel saw significant drops, dragging the broader indices down. Investors cited weakening global commodity prices, particularly for steel and aluminum, as key culprits, exacerbated by China’s economic slowdown and rising US interest rate fears.
Broader market sentiment remained cautious. IT stocks offered mild resistance but couldn’t stem the tide, while banking heavyweights like HDFC Bank and ICICI Bank added to the woes with modest losses. Foreign institutional investors (FIIs) continued their net selling spree, offloading over ₹2,000 crore worth of equities last week alone.
Analysts point to a cocktail of factors: elevated inflation readings from the weekend, anticipation of the upcoming RBI policy meet, and geopolitical tensions in the Middle East rattling commodity markets. ‘The market is in a clear correction phase,’ said a veteran trader. ‘Metals are leading the downside due to their cyclical nature and global linkage.’
As trading progresses, eyes are on intraday support levels around 24,200 for Nifty. A breach could signal deeper troubles ahead. For now, bargain hunters might eye oversold metal stocks, but caution prevails in this volatile environment. The coming days will test whether this is a temporary dip or the start of a prolonged bear phase.