In a sign of persistent market jitters, Indian equities opened deep in the red for the third straight day on Monday. The Sensex shed approximately 200 points right at the opening bell, underscoring deepening concerns over global headwinds and tepid domestic cues.
Trading commenced with the 30-share Sensex at 81,512, a drop of 186 points or 0.23% from the previous close. The Nifty, tracking closely, dipped 55 points to hover around 24,790. This follows a bruising Friday where both indices closed over 1% lower, wiping out weekly gains.
What’s driving the downturn? Escalating oil prices due to Middle East flare-ups are a major culprit, threatening India’s import bill and fiscal health. Add to that, underwhelming Q2 earnings from key players and anticipation of a hawkish RBI stance, and you’ve got a recipe for risk aversion.
Financial services led the losers’ parade, with private banks like Axis Bank and Kotak Mahindra posting declines up to 1.5%. Auto stocks also struggled on softening demand signals, while metals faced headwinds from global commodity price swings.
On a brighter note, consumer goods and healthcare pockets showed resilience. ITC and Dr. Reddy’s Laboratories climbed amid rotational buying, hinting at a flight to safety.
Institutional flows paint a mixed picture: FIIs offloaded shares worth billions last week, but DIIs stepped in aggressively. Volatility index India VIX spiked 3%, signaling heightened trader anxiety.
Market veterans remain sanguine in the long run. ‘Near-term pain is inevitable, but India’s growth story intact. Look for dips to accumulate,’ opined a veteran fund manager. Investors now await U.S. Fed minutes and domestic GDP figures for directional cues, as Mumbai’s trading floors brace for another volatile week.