Sensex Slips 220 Points, Nifty Breaks 26,000 as Selling Widens

Indian stocks declined during the first hour of trading on Monday due to the emergence of selling pressure on heavyweights, which led to both benchmark indices falling into the red. The BSE Sensex lost more than 220 points, whereas the NSE Nifty dropped below 26,000, influenced by the weak global market and the cautious approach of investors at the beginning of the week.

Around noon, the Sensex was around 85,000, down 0.3 percent. The Nifty was approximately 25,950, down about 90 points. The market was not very favorable for the investors, as the number of declining shares was larger than that of the advancing shares on both exchanges.

The losses were due to the oil & gas, auto, healthcare, and telecom sectors. ONGC was among the biggest drains on the indices, with its steepest single-day drop in nearly five months. Auto giants like Mahindra & Mahindra and Eicher Motors combined also faced tough conditions, which was reflected in the broader BSE Auto index that lost nearly 1 percent. Realty stocks also followed the decline, while FMCG and consumer durable sectors gave limited support.

Media stocks, however, were among the few that gained during the day. The Nifty Media index climbed nearly 1.5 percent, led by PVR Inox, DB Corp, and Sun TV Network. PVR Inox's stock price increased by nearly 4 percent, the best gain in almost two months, aided by strong volumes and selective buying.

Among the stocks, KEC International went up after the announcement of new orders worth ₹1,150 crore in the transmission, distribution, and civil segments, including its largest-ever private sector order for a 765 kV transmission project. The company's share price rose by over 2 percent in the early trading session.

Bharat Electronics witnessed a slight increase in its stock price soon after it announced new orders of Rs 776 crore which had been placed since the middle of November, covering the areas of defence electronics, communication systems, and software related services, among others. Then, Astra Microwave Products garnered attention because of a Rs 124 crore order from its partner firm Astra Rafael Comsys for the software-defined radio systems-related supply.

In the primary market, Corona Remedies had a terrific start, getting listed on the NSE at a premium of more than 38 percent after its IPO was heavily oversubscribed in all the categories. The market value of the company after the listing was almost ₹8,900 crore. Conversely, Wakefit Innovations made its entry to the market at the issue price, resulting in a flat listing and mixed investor sentiments.

Some stocks were in the spotlight due to changes in regulations and related corporate actions. Brigade Enterprises lost ground after the Tax Authorities conducted checks at its premises earlier this month, though the company stated that its activities were not affected. Geojit Financial Services experienced a significant volume of trade after a large block deal comprising more than 15 percent of the company's shares, although the stock was trading lower.

In terms of sectors, with the exception of FMCG and consumer durables, the majority of BSE indices were in negative territory. The healthcare, power, IT, and metal sectors registered slight downtrends which was a sign of risk aversion in the market. Midcap shares gave up about 0.4 percent of their value while the small-cap segment remained mostly unchanged, a scenario that points to selective participation in the market.

Analysts linked the cautious mood to continuing foreign fund outflows, the rupee which hit a new all-time low against the US dollar, and the uncertainty surrounding the global markets. The technical analysts pointed out that the Nifty had immediate support near the 25,850–25,900 area and resistance at 26,150–26,200. The markets are likely to remain range-bound with a negative bias until these levels are clearly broken.