Sensex, Nifty open lower as IT stocks drag, investors book profits after sharp rally

New Delhi: Benchmark equity indices Sensex and Nifty opened lower on Monday as selling pressure in heavyweight IT stocks and profit-booking following last week’s sharp rally weighed on investor sentiment.

The 30-share BSE Sensex declined 93.95 points to 80,919.19 in early trade, while the broader NSE Nifty 50 slipped 30 points to 24,968.80, falling below the psychologically important 25,000 mark.

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Among Sensex constituents, HCL Technologies, Infosys, Power Grid Corporation, Bharti Airtel, UltraTech Cement and Tata Consultancy Services emerged as the major laggards.

However, buying interest in banking stocks, including State Bank of India, HDFC Bank and ICICI Bank, along with InterGlobe Aviation, helped limit the losses.

Profit-booking weighs on sentiment

The subdued opening followed a strong rally in the previous week, during which the Sensex surged 6,568.49 points, or 8.82 percent, while the Nifty gained 1,977.25 points, or 8.57 percent.

Market participants are now assessing whether the recent upward momentum can sustain amid concerns over global technology valuations and the possibility of further profit-booking.

“After a sharp weekly advance and a subdued Muhurat trading session, the market enters the new week facing a key test of momentum, with investors likely to weigh the scope for further gains against the prospect of near-term profit-taking,” said Ponmudi R, CEO of Enrich Money.

He added that investors would closely monitor domestic buying interest, global concerns surrounding the artificial intelligence trade and the upcoming consumer price index (CPI) data scheduled for Thursday.

Asian markets advance, crude oil eases

Despite the weakness in domestic equities, major Asian markets traded higher. South Korea’s Kospi, Japan’s Nikkei 225, China’s Shanghai Composite and Hong Kong’s Hang Seng were all in positive territory.

US equity markets had ended mostly higher on Friday.

Meanwhile, Brent crude, the global oil benchmark, declined 0.16 percent to USD 98.16 per barrel.

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Muhurat trading ends seven-day winning streak

Indian equity benchmarks had closed marginally lower during Sunday’s special Diwali Muhurat trading session as investors booked profits following seven consecutive sessions of gains.

The Sensex settled 28.62 points, or 0.04 percent, lower at 80,999.40, while the Nifty declined 43.95 points, or 0.18 percent, to close at 24,986.40.

The special session, held to mark the beginning of Hindu calendar year Samvat 2083, began on a positive note but failed to sustain its initial gains.

Muhurat trading is an annual symbolic session conducted on Diwali and is traditionally considered an auspicious occasion for investors to make fresh investments.

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