Indian Markets Open Lower Tracking Global Selloff; Auto, Banking Stocks Under Pressure
Indian equity benchmarks started the trading week on a weak note, mirroring a selloff in major global markets. The Sensex and Nifty both slipped in early trade on Monday, pressured by losses in auto, energy, and banking stocks.
As of 10:15 AM, the Sensex was trading 150 points lower at 85,100, while the broader Nifty was down around 50 points, near the 26,000 mark.
Global Cues Weigh on Sentiment
The downturn on Dalal Street follows a broad decline across Asian and US markets. Investor sentiment was dampened by weak cues from overseas, leading to profit-taking after last week's gains.
In Asia, Japan's Nikkei tumbled 1.62%, and South Korea's KOSPI dropped 1.61%. Hong Kong's Hang Seng and China's Shanghai Composite also traded with cuts. This weakness followed a negative close on Wall Street last Friday, where the Nasdaq slumped 1.69% and the S&P 500 fell over 1%.
"Markets are taking a pause after a strong rally. The immediate trigger is the negative global backdrop, which is causing a ripple effect," said a market analyst. Sectors like auto and banking, which are sensitive to economic cycles, were among the top drags.
IPO Watch: KSH International Issue Opens Tuesday
In other news, the initial public offering (IPO) of KSH International Limited will open for subscription on Tuesday, December 16. The company aims to raise โน710 crore through a combination of a fresh issue and an offer for sale by promoters. The subscription window will close on Wednesday, December 18.
A Look Back at Last Week's Rally
Monday's decline comes after a robust performance on Friday. On December 12, the Sensex had surged 449 points to close at 85,267, and the Nifty gained 148 points to settle at 26,046. Mid-cap and small-cap indices also ended significantly higher, with Tata Steel and Hindalco leading the pack of top Nifty gainers.
Market experts suggest that while the short-term trend is being dictated by global factors, domestic fundamentals remain intact. Traders are likely to keep a close watch on upcoming economic data and foreign fund activity for further direction.
