Indian equity markets kicked off the new trading week on a negative note, with key benchmark indices extending their losing streak for a fifth straight session. Investor sentiment remained subdued amid persistent global concerns.
Benchmarks Open Deep in the Red
On Monday morning, the domestic market witnessed a weak opening. The NSE Nifty50 index opened below the 25,700 mark and was trading at 25,600 by 9:20 AM, registering a decline of 82 points or 0.32%. Similarly, the BSE Sensex plunged 307 points or 0.37% to trade at 83,269.
An initial attempt at recovery quickly fizzled out. Within minutes of opening, both indices slipped back into negative territory as selling pressure re-emerged across sectors.
Global Cues and Geopolitical Concerns Weigh
The extended decline in Indian markets comes despite a positive close on Wall Street and gains in most Asian peers. Wall Street had closed at a record high on Friday, setting a positive tone. Following this, major Asian markets, including those in Hong Kong, Shanghai, Seoul, and Taipei, moved higher. Bourses in Bangkok, Manila, Singapore, Kuala Lumpur, and Jakarta also registered early gains.
This global rally is built on a strong start to the year, with European benchmarks in Frankfurt, London, and Paris, along with Seoul, hitting record highs last week. Optimism in the technology sector and rising defence shares provided support.
However, back home, investors grappled with worries over global trade dynamics and political uncertainty in Washington. These factors continued to overshadow positive global cues. On the commodities front, oil prices eased slightly but held largely stable after last week's rally. Geopolitical risks stayed elevated due to continued protests in Iran, while concerns about a potential supply glut persisted after the US seized shipments of Venezuelan crude.
Market Outlook and Sentiment
The consistent downward trend over five sessions highlights the cautious stance of market participants. The inability to hold onto early rebound attempts indicates underlying weakness and a lack of strong buying conviction at current levels. Analysts suggest that until the global macroeconomic and political headwinds show signs of abating, volatility may persist in the Indian equity space. The divergence between performing global markets and the local downturn will be a key area watched by traders in the coming sessions.
