Indian benchmark indices opened flat to lower on Monday, tracking mixed global cues and a hike in domestic fuel prices. The BSE Sensex fell 0.2% to 57,500, while the NSE Nifty slipped 0.1% to 17,150.
Market Performance
The broader markets also traded mixed, with the BSE midcap index gaining 0.3% and the smallcap index declining 0.1%. Sectorally, IT and pharma stocks were among the top losers, while auto and metal stocks showed some resilience.
Fuel Price Impact
State-owned oil marketing companies raised petrol and diesel prices by 25-30 paise per liter on Monday, marking the first increase in over a month. This move is expected to stoke inflation concerns and may impact consumer spending. Analysts believe that sustained fuel price hikes could weigh on market sentiment in the near term.
Global Cues
Asian markets were trading mixed, with Japan's Nikkei 225 gaining 0.3% and China's Shanghai Composite slipping 0.2%. US futures pointed to a flat open after a volatile week on Wall Street. Investors remain cautious ahead of key economic data releases later this week, including US GDP and inflation numbers.
Expert View
According to market experts, the domestic market is likely to remain range-bound in the near term due to lack of fresh triggers. However, they expect selective buying in sectors like banking, auto, and infrastructure. The ongoing earnings season will also provide direction to individual stocks.
Outlook
Going forward, the market will closely monitor global developments, including the Russia-Ukraine situation, crude oil prices, and central bank policies. Domestically, the trajectory of fuel prices and its impact on inflation will be key factors influencing investor sentiment.
