The trading week kicked off with a mixed start in the stock market on Monday, initially opening with a neutral stance in positive territory but eventually slipping into negative territory. This shift reflected a cautious sentiment among investors amidst global market movements.
At the opening bell, the benchmark indices, Sensex and Nifty, saw a slight dip in their values, with the Sensex marginally down by 35.75 points at 73,774.81, and the Nifty experiencing a slight decline of 2.20 points, reaching 22,376.20. However, as the session progressed, the indices quickly reversed course, witnessing more pronounced losses.
Market breadth among Nifty companies remained subdued, with 22 advances and 28 declines recorded. Notable gainers included Dr. Reddy, NTPC, Power Grid, Bajaj Auto, and ONGC, while JSW Steel, Tata Steel, Eicher Motors, Tata Consumer Products, and M&M emerged as the top losers.
Varun Aggarwal, founder and managing director of Profit Idea, remarked, “Despite gains observed in Asian markets, Indian indices struggled to maintain momentum, influenced by global cues. The Nikkei 225, Japan’s benchmark index, surged to a new record high above the 40,000 mark, signaling optimism about the country’s economic recovery from deflation.”
Conversely, Indian stocks faced downward pressure amid cautious investor sentiment. In the United States, major indices rallied on Friday, with the S&P 500 and Nasdaq reaching all-time highs, driven by gains in the tech sector and falling Treasury yields. While the S&P 500 rose by 0.95 percent for the week and the Nasdaq by 1.74 percent, the Dow experienced a slight decline of 0.11 percent.
Meanwhile, Asian stocks advanced on Monday, following the positive trajectory set by US shares. Investor sentiment remained buoyant, particularly in Japan, as the Nikkei-225 breached the significant 40,000 level for the first time in its history. In China, investors awaited potential stimulus measures as the National People’s Congress convened.
The global market outlook remains closely tied to upcoming events, including Federal Reserve Chair Jerome Powell’s testimony this week and the release of the US February payrolls report, which could influence policy decisions. Additionally, in Europe, the European Central Bank is expected to maintain rates, while the Bank of Canada may consider rate cuts in the coming months, further shaping market dynamics worldwide.
