New Delhi: Benchmark equity indices Sensex and Nifty opened lower on Monday, weighed down by selling in heavyweight IT stocks and profit-booking following last week's sharp rally.
The 30-share BSE Sensex declined 93.95 points to 80,919.19 in early trade, while the NSE Nifty 50 slipped 30 points to 24,968.80, moving below the 25,000 mark.
HCL Technologies, Infosys, Power Grid Corporation, Bharti Airtel, UltraTech Cement and Tata Consultancy Services were among the major laggards on the Sensex.
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 Strong Weekly Rally
The subdued opening came after a strong performance in the previous week. The Sensex had gained 6,568.49 points, or 8.82%, while the Nifty advanced 1,977.25 points, or 8.57%.
Market participants are now assessing the sustainability of the rally amid concerns over global technology valuations and the possibility of further profit-booking.
Ponmudi R, CEO of Enrich Money, said the market was entering the new week at a crucial point after its sharp weekly gains and a subdued Muhurat trading session.
He said investors would track domestic buying activity, global concerns surrounding artificial intelligence-related investments and the consumer price index (CPI) data scheduled for Thursday.
Asian Markets Trade Higher, Crude Prices Ease
Major Asian markets traded in positive territory despite the weakness in domestic equities. 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 closed mostly higher on Friday.
Meanwhile, Brent crude, the global oil benchmark, declined 0.16% to USD 98.16 per barrel.
Muhurat Trading Ends Seven-Day Winning Streak
Indian equity benchmarks had closed marginally lower during Sunday's special Diwali Muhurat trading session, ending a seven-session winning streak as investors booked profits.
The Sensex settled 28.62 points, or 0.04%, lower at 80,999.40, while the Nifty declined 43.95 points, or 0.18%, to close at 24,986.40.
The special session, held to mark the beginning of 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 considered an auspicious occasion for investors to make fresh investments.
