Investors were disappointed on the first trading day of the week. The domestic market closed with a decline on Monday, mainly due to heavy selling in banking stocks. BSE Sensex fell 442.93 points to 77,708.52, while NSE Nifty fell 95.80 points to 24,238.50. Although there was volatility in the market throughout the day, the impact of weakness in the banking sector was clearly visible on the index in the end.
The biggest fallers on the Nifty were Axis Bank, HDFC Bank, Kotak Mahindra Bank, Maruti Suzuki and Jio Financial Services; The effect of selling in these big shares was clearly visible on the entire market. On the contrary, gains were seen in Trent, Cipla, Power Grid Corporation, Bharti Airtel and JSW Steel, which provided some support to the market.
**Strength in PSU banks and pharma sector**
Despite the overall market decline, several sectors performed well. Nifty PSU Bank index led the way with the biggest gain (2.8%). Apart from this, buying trend was also seen in Pharma, Media, Energy, Metal, Oil & Gas, Infrastructure, FMCG and Consumer Durables sectors. At the same time, Nifty Private Bank Index proved to be the weakest sector falling 2.2%; Bank, auto and realty sectors also closed under pressure.
**Relief from midcap and smallcap stocks**
Amidst the fall in the market, midcap and smallcap stocks gave some relief to investors. The Nifty Midcap 100 index closed around 0.6% higher, while the Smallcap 100 index also registered marginal gains. This shows that investors’ interest in small and mid-cap stocks still remains.
**Weakness in rupee also**
Along with the stock market, the Indian rupee also remained under pressure. On Monday, the rupee weakened by 17 paise and closed at 96.45 against the dollar. In the last trading session it had closed at 96.28 per dollar.
What are the signals for investors?
Weakness in banking stocks changed the market mood. In the coming days, quarterly results of companies, activities of foreign investors and global market trends will play an important role in deciding the direction of the Indian stock market. Keeping this in mind, investors are advised to exercise caution while investing.
