Indian equity markets ended the trading session in negative territory on Monday as weakness among Banking, Real Estate and Auto stocks weighed on indices.
On the National Stock Exchange at the close, the Nifty 50 fell 2.14% to a new six-month low. The BSE Sensex 30 declined 2.22% in the same session.
Among constituents of the Nifty 50, Hindalco Industries Ltd. (NSE:HALC) was one of the top performers, finishing up 2.45% or 21.25 points at 887.95. Coal India Ltd (NSE:COAL) advanced 1.09% or 4.85 points to 449.90, and Oil And Natural Gas Corporation Ltd (NSE:ONGC) rose 1.01% or 2.85 points to close at 284.80.
By contrast, several financial names posted steep declines. Bajaj Finance Ltd (NSE:BJFN) led losses on the Nifty 50, sliding 4.95% or 41.80 points to finish at 802.00. IndusInd Bank Ltd. (NSE:INBK) fell 4.86% or 38.55 points to end the day at 754.00, while State Bank Of India (NSE:SBI) dropped 3.87% or 39.50 points to 980.00.
On the BSE Sensex 30 roster, Tech Mahindra Ltd (BO:TEML) was among the better performers, up 1.65% to 1,414.00. Power Grid Corporation of India Ltd (BO:PGRD) gained 0.24% to settle at 296.10, and Reliance Industries Ltd (BO:RELI) rose 0.13% to close at 1,350.00.
The weakest names on the Sensex included Bajaj Finance Ltd (BO:BJFN), down 4.90% to 803.00, IndusInd Bank Ltd. (BO:INBK), which lost 4.65% to 755.00, and UltraTech Cement Ltd (BO:ULTC), which declined 4.54% to 10,550.00 at the close.
Market breadth was heavily tilted toward declines. On the India National Stock Exchange, 2,260 issues fell and 344 advanced, while 20 stocks finished unchanged. On the Bombay Stock Exchange, 3,346 shares fell, 831 rose and 147 were unchanged.
There were notable moves in stock milestones: shares of Bajaj Finance Ltd (NSE:BJFN) fell to 52-week lows, down 4.95% or 41.80 to 802.00, and on the BSE they also fell to 52-week lows, slipping 4.90% or 41.35 to 803.00. Conversely, shares of Oil And Natural Gas Corporation Ltd (NSE:ONGC) rose to 52-week highs, increasing 1.01% or 2.85 to 284.80.
Volatility jumped as the India VIX, which tracks implied volatility of Nifty 50 options, climbed 3.55% to 27.75, reaching a three-year high.
Commodities saw gains during the session. Gold futures for June delivery were up 0.80% or 36.32 to $4,560.62 a troy ounce. In energy markets, crude oil for May delivery rose 2.30% or 2.29 to $101.93 a barrel, while the June Brent contract advanced 2.84% or 2.99 to trade at $108.31 a barrel.
Currency moves included a stronger US dollar versus the rupee, with USD/INR up 0.30% to 95.06. The euro eased against the rupee, with EUR/INR down 0.24% to 108.83. The US Dollar Index Futures was higher by 0.12% at 100.10.
Overall, the session closed with broad-based selling across major bourses, outsized weakness in select financial names and elevated volatility readings as commodities and the dollar strengthened.
Summary
The Nifty 50 declined 2.14% to a six-month low and the BSE Sensex fell 2.22% as losses in Banking, Real Estate and Auto sectors pressured markets. Several individual stocks bucked the trend, with metals and energy names among the session's gainers. Market breadth was negative, the India VIX hit a three-year high and commodities and the dollar moved higher.
Key points
- Nifty 50 closed down 2.14%, hitting a six-month low; BSE Sensex lost 2.22%.
- Top Nifty winners included Hindalco, Coal India and ONGC; major decliners included Bajaj Finance, IndusInd Bank and State Bank of India.
- India VIX rose to 27.75, a three-year high; gold and crude oil prices increased; USD/INR strengthened.
Risks and uncertainties
- Elevated implied volatility in Nifty options, indicated by the India VIX at a three-year high, suggests increased market uncertainty for equities.
- Concentrated declines in major banking names pose downside risk to financial sector performance and to indices with heavy bank weightings.
- Rising commodity prices, including crude oil and gold, and a firmer US dollar against the rupee may influence corporate margins and currency-sensitive sectors.