New Delhi: Benchmark equity indices Sensex and Nifty opened lower on Monday as selling pressure in heavyweight IT stocks and profit-booking following last week’s sharp rally weighed on investor sentiment.
The 30-share BSE Sensex fell 93.95 points to 80,919.19 in early trade, while the NSE Nifty 50 declined 30 points to 24,968.80, slipping below the 25,000 mark.
Among Sensex constituents, HCL Technologies, Infosys, Power Grid Corporation, Bharti Airtel, UltraTech Cement and Tata Consultancy Services were among the major laggards.
Buying in banking stocks, including State Bank of India, HDFC Bank and ICICI Bank, along with InterGlobe Aviation, helped limit the losses.
Profit-booking follows sharp weekly gains
The weak opening came after a strong rally in the previous week. The Sensex had gained 6,568.49 points, or 8.82 per cent, while the Nifty advanced 1,977.25 points, or 8.57 per cent.
Investors are now assessing whether the recent momentum can continue amid concerns over global technology valuations and the possibility of further profit-booking.
“After a sharp weekly advance and a subdued Muhurat trading session, the market enters the new week facing a key test of momentum, with investors likely to weigh the scope for further gains against the prospect of near-term profit-taking,” said Ponmudi R, CEO of Enrich Money.
He said investors would also track domestic buying interest, global concerns surrounding the artificial intelligence trade and the consumer price index (CPI) data scheduled for Thursday.
Asian markets trade higher, crude oil declines
Domestic markets opened lower even as major Asian indices traded in positive territory. South Korea’s Kospi, Japan’s Nikkei 225, China’s Shanghai Composite and Hong Kong’s Hang Seng were all trading higher.
US equity markets had also ended mostly higher on Friday.
Brent crude, the global oil benchmark, fell 0.16 per cent to USD 98.16 per barrel.
Muhurat trading ends seven-session winning streak
Indian equity benchmarks had closed marginally lower during Sunday’s special Diwali Muhurat trading session as investors booked profits after seven consecutive sessions of gains.
The Sensex ended 28.62 points, or 0.04 per cent, lower at 80,999.40, while the Nifty declined 43.95 points, or 0.18 per cent, to settle at 24,986.40.
The special session, held to mark the beginning of the Hindu calendar year Samvat 2083, opened on a positive note but failed to sustain its early gains.
Muhurat trading is an annual symbolic session held on Diwali and is traditionally regarded as an auspicious occasion for investors to make fresh investments.
