Stock Market Update: Nifty Slips Below 26,000 as Market Weakens Ahead of Monthly Expiry
The Indian stock market experienced a downturn on Monday, with the Nifty 50 index closing 0.42% lower at 25,960, slipping below the 26,000 mark. The Sensex also saw a significant drop, falling 441 points to 84,791. The market, which was initially supported by gains in IT and banking stocks, turned sharply weak in the final hour of trading as the breadth of declines became more pronounced. The NSE advance-decline ratio stood at 1:3, indicating a strong bias towards selling.
The automotive sector, particularly two-wheeler makers, outperformed the broader market. Eicher Motors and Bajaj Auto were among the top gainers on the Nifty, alongside Tech Mahindra, Wipro, and Shriram Finance. These companies managed to buck the overall negative trend, providing some relief to investors.
However, the defense sector faced significant pressure, with stocks falling between 2% and 4%. This decline was triggered by the crash involving HAL’s Tejas aircraft, which led to sector-wide concerns. CG Power also dropped 4% after the cancellation of its Chittaranjan Locomotive Works order, adding to the market's woes.
Real estate stocks were particularly hard hit, with shares declining sharply by as much as 3%. The fall was driven by expectations that India’s new labour codes could increase developers’ costs by 10–15%, leading to a sell-off in companies like Prestige Estates Ltd., Brigade Enterprises Ltd., and Oberoi Realty.
Despite the overall negative sentiment, some midcap stocks managed to perform well. RVNL and NBCC rose 4–5%, defying the broader market trend. MCX gained around 2% after the exchange’s management provided an upbeat business outlook. Max Financial also advanced following reports that the government may clear its insurance and non-insurance merger proposal.
Investors are advised to remain cautious as the market approaches the monthly derivatives expiry, which is often a period of heightened volatility. It is crucial to monitor key economic indicators and company-specific news to make informed investment decisions. The next few days will be critical in determining the market’s direction, and investors should be prepared for further fluctuations.
In conclusion, while the market faced significant headwinds on Monday, there were pockets of strength in specific sectors. As the monthly expiry approaches, investors should stay vigilant and consider risk management strategies to navigate the uncertain market conditions.
