MUMBAI: Domestic stock markets closed lower on Monday, marking its third consecutive session in the red as concerns over disappointing quarterly earnings and impending regulatory changes weighed on investor sentiment. The Sensex slipped 52.51 points to close at 79,433.81, while the Nifty dropped 25.10 points, ending the day at 24,123.10.
Despite the fall in the market, monthly investments through SIP have gone up in October versus September, (Rs 25,323 crore Vs Rs 24,509 crore). Among Nifty-listed companies, 19 stocks advanced, 30 declined, and 1 remained unchanged. Power Grid, Trent, HCL Technologies, Infosys, and Tech Mahindra led the gains, while Asian Paints, Britannia, Apollo Hospitals, Cipla, and ONGC registered significant losses.
Shriram Subramanian, founder and MD of InGovern Research Services, noted, “Markets are sluggish with a downward bias as investors are coming to grips with poor Q2 results of companies. Asian Paints, as expected, tanked considerably due to its lackluster performance. The upcoming F&O regulation changes, which restrict expiry to a monthly basis starting November, have also made traders cautious”.
Echoing these sentiments, V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, “In India, worse-than-expected earnings downgrades for FY25 are weighing on stock prices, favoring the bears in the near-term. FIIs may continue to sell and shift funds to the US, which has outperformed India this year. However, at some point, India’s valuations will become attractive, potentially triggering a short-term trend reversal”.
Vijayakumar also highlighted that the weakness in Chinese stocks due to a disappointing stimulus package could indirectly benefit Indian stocks. “Investors should focus on segments where growth is robust, such as banking, telecom, and digital sectors. Additionally, a positive outlook for the US market could support Indian IT stocks”, he said.
As markets grapple with recent earnings reports and the forthcoming regulatory changes in derivatives trading, investor caution remains high, signaling possible continued volatility in the sessions ahead. (ANI)