Sensex Rises 170 Points, Nifty Flat as Telecom, Auto Stocks Counter IT Losses
Sensex Rises 170 Points : Indian equity markets experienced a mixed session on Monday, with the Sensex rising 170 points while the Nifty remained largely flat. Gains in telecom and auto stocks helped offset losses in IT and oil & gas sectors, as investors remained cautious amid global uncertainties regarding U.S. tariffs.
The benchmark Sensex climbed 174 points, or 0.2%, to 74,629, while the Nifty edged up 14 points to 22,567 at around 11:45 AM. Despite this modest uptrend, markets are still struggling with prolonged weakness, as indices have dropped nearly 14% from their record highs in late September.
Market Performance and Sectoral Highlights
Key Stock Movements
While telecom and auto stocks provided support to the markets, IT and metal sectors continued to drag.
- Gainers: Bajaj Finserv, Nestle, Bharti Airtel, M&M, and Bajaj Finance led the upward momentum, posting gains between 1% and 3%.
- Losers: Wipro, Coal India, SBI Life, Dr. Reddy’s, and Hindalco were among the top laggards, falling between 1% and 4%.
Tata Investment surged 7% after Tata Capital’s board approved plans for an IPO, while 360 ONE WAM climbed 4% on Citi’s bullish revenue projection post its acquisition of Batlivala & Karani Securities.
Sector-wise Performance
- Telecom and Auto: Led the market gains, with Bharti Airtel and M&M performing strongly.
- IT Sector: Continued to decline, losing 0.7%, following a slump in the Nasdaq Composite, as concerns over slowing U.S. growth weighed on investor sentiment.
- Metals and Realty: Were the worst hit, with both indices shedding over 1%.
- Midcap and Smallcap Indices: Underperformed, with BSE Midcap down 0.4% and BSE Smallcap down 0.1%.
FII Selling and Market Outlook
According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, markets remain oversold, but valuations are fair, and short positions are high. However, relentless selling by Foreign Institutional Investors (FIIs) continues to be a concern.
“FIIs have aggressively offloaded stocks in February, selling equities worth Rs 43,263 crore, while Domestic Institutional Investors (DIIs) have stepped in with net purchases of Rs 47,787 crore,” Vijayakumar stated.
He noted that as long as shorting remains profitable for FIIs, the pressure on Indian equities will likely persist.
Impact of U.S. Tariffs
Global uncertainties surrounding U.S. trade policies also impacted investor sentiment. President Donald Trump’s recent reaffirmation of tariffs on Canada, Mexico, and new restrictions on Chinese investments have kept global markets on edge.
Technical Analysis: Key Levels to Watch
- Support Zone: Analysts highlight the 22,400–22,500 range as a critical support level for the Nifty 50.
- Resistance Levels: The 22,670–22,720 zone remains a significant hurdle for upward movement.
According to Sameet Chavan, Head of Research at Angel One, the market’s ability to hold the 22,500 level will determine whether a rebound is possible. Meanwhile, the resistance gap at 22,670–22,720 could limit gains.
Financial Ratios & Market Data
| Index/Stock | Value | Change |
|---|---|---|
| Sensex | 74,629 | +174 pts (+0.2%) |
| Nifty 50 | 22,567 | +14 pts (+0.06%) |
| Nifty IT | 32,450 | -0.7% |
| Nifty Auto | 17,342 | +1.2% |
| Nifty Metal | 9,415 | -1.1% |
| BSE Midcap | 34,875 | -0.4% |
| BSE Smallcap | 39,220 | -0.1% |
| Stock | P/E Ratio | P/B Ratio | Dividend Yield |
|---|---|---|---|
| Bharti Airtel | 35.2 | 5.1 | 0.5% |
| Bajaj Finserv | 41.8 | 4.3 | 0.7% |
| M&M | 28.5 | 3.9 | 1.2% |
| Wipro | 20.7 | 3.1 | 1.5% |
| Coal India | 8.4 | 2.7 | 7.2% |
Conclusion: What Lies Ahead for Markets?
With FIIs continuing their selling spree and global uncertainties persisting, Indian markets remain volatile. While DII buying is supporting the indices, technical resistance at 22,670 for the Nifty could pose a challenge for further recovery.
Investors should closely watch global market trends, IT sector performance, and updates on U.S. trade policies, as they will significantly influence market direction in the coming weeks.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.