The domestic stock market experienced a turbulent start to the week on Monday, with significant volatility marking the session. While the market opened on a flat note, initial weakness pushed indices into the red. However, buying interest in key sectors later in the day helped both Sensex and Nifty stage an impressive comeback, closing the day on a positive note.
Sensex and Nifty’s Early Struggle and Strong Rebound
The BSE Sensex, India’s benchmark equity index, started the session almost unchanged but quickly slipped into negative territory, shedding more than 300 points during the early hours. Weak global cues, profit booking, and investor caution ahead of key economic data releases weighed on sentiment.
Similarly, the NSE Nifty 50 struggled initially, falling below the 24,500 mark. However, a wave of late buying in banking, IT, and FMCG stocks helped the index recover losses, eventually closing above 24,650.
Key Market Highlights
Sensex: Opened at 81,270.45, dropped to an intraday low of 80,920.12, and rebounded to close at 81,655.32, up +0.42%.
Nifty 50: Opened at 24,610.30, fell to 24,480.65, and recovered to close at 24,685.85, gaining +0.35%.
Midcap & Smallcap Performance: The Nifty Midcap 100 index rose by 0.68%, while the Nifty Smallcap 100 gained 0.74%, reflecting strong investor interest in broader markets.
Volatility Index: India VIX remained elevated at 14.25, suggesting ongoing uncertainty in the near term.
Sector-Wise Performance
Banking & Financials Lead the Recovery
The Nifty Bank index recovered sharply from intraday lows, ending the day up 0.65%. Leading private lenders such as HDFC Bank, ICICI Bank, and Kotak Mahindra Bank posted notable gains, supported by healthy quarterly updates and steady credit growth.
IT Stocks in Focus
The Nifty IT index rose 0.55%, driven by renewed interest in large-cap IT names like Infosys, TCS, and Wipro. A weaker rupee against the US dollar also supported positive sentiment in the sector.
FMCG and Pharma Provide Stability
FMCG giants Hindustan Unilever and ITC added stability to the market, posting modest gains amid strong consumer demand. The Nifty Pharma index also edged higher by 0.38% as investors sought defensive plays.
Energy and Metals Face Pressure
Despite the broader market’s recovery, energy and metal stocks lagged. Nifty Metal closed marginally lower as global commodity prices softened, while Nifty Energy saw profit booking after last week’s rally.
Top Gainers and Losers of the Day
Top Gainers on Nifty 50:
HDFC Bank – +2.14%
ICICI Bank – +1.88%
Infosys – +1.65%
TCS – +1.42%
Kotak Mahindra Bank – +1.39%
Top Losers on Nifty 50:
Tata Steel – -1.25%
JSW Steel – -1.12%
Adani Enterprises – -1.08%
Power Grid – -0.95%
ONGC – -0.85%
Factors Driving Market Volatility
Weak Global Cues
Asian markets traded mixed as investors awaited key US inflation data and Federal Reserve policy signals. Concerns over China’s sluggish economic recovery and geopolitical tensions also weighed on sentiment.
Profit Booking
After a strong rally in the previous week, market participants opted for profit booking, particularly in sectors that had seen sharp gains, leading to intraday dips.
Domestic Macro Factors
Traders remained cautious ahead of India’s upcoming CPI inflation and IIP (Index of Industrial Production) data, which could influence the Reserve Bank of India’s policy stance.
Rupee and Commodity Market Impact
The Indian Rupee depreciated by 12 paise, closing at ₹83.24 against the US dollar. This weakness, while negative for importers, supported export-oriented sectors like IT.
In the commodity market, crude oil prices eased slightly, with Brent crude trading around $86.45 per barrel, providing relief for India’s inflation outlook. Gold prices remained steady as investors awaited US economic data.
Market Expert Views
Market strategists noted that while Monday’s volatility was expected due to global and domestic uncertainties, the recovery in the latter half of the session reflects strong underlying liquidity and retail participation.
“The market’s ability to bounce back from early losses shows resilience. We expect consolidation in the near term with stock-specific opportunities emerging in banking, IT, and FMCG sectors,” said a senior equity analyst at a leading brokerage.
Outlook for the Rest of the Week
Looking ahead, the market is likely to take cues from:
US CPI inflation data and Fed commentary.
India’s CPI and IIP numbers scheduled for release mid-week.
Quarterly earnings from major companies.
Movement in global crude oil prices and US bond yields.
Given the current levels, Nifty 50 has immediate support near 24,500 and resistance at 24,750, while Sensex has support at 81,000 and resistance around 81,800.
Key Technical Indicators
Nifty RSI: 54.8 – indicating a neutral zone.
MACD: Showing positive crossover for select large caps.
200-DMA: Nifty remains well above its long-term moving average, signaling an ongoing bullish trend despite short-term volatility.
Investment Strategy in Current Market Conditions
With volatility expected to persist, market experts recommend:
Accumulating quality large caps in banking, IT, and FMCG during dips.
Staying cautious on high-beta sectors like metals and energy until global cues improve.
Maintaining a balanced portfolio with a mix of growth and defensive stocks.
Avoiding aggressive leveraged positions until clarity emerges on global interest rate trends.
Conclusion
The first trading day of the week underscored the resilience of the Indian stock market, with both Sensex and Nifty staging a strong rebound after early declines. While global and domestic uncertainties continue to drive short-term volatility, strong fundamentals, robust liquidity, and healthy corporate earnings are expected to support the market in the coming sessions.
Investors should remain watchful of upcoming macroeconomic data and global developments, using any dips as opportunities to add quality stocks to their portfolios.
