Stock Market Rally Fizzles Out As Bears Take Control Of D-Street, Sensex Sheds 150 Points While Nifty Struggles Below 25,000

Mumbai: Indian stock markets witnessed a sharp reversal on Monday as benchmark indices Sensex and Nifty erased early gains and slipped into negative territory despite positive global cues and renewed foreign investor interest. The BSE Sensex declined around 150 points, while the NSE Nifty fell below the psychological 25,000 mark after opening higher.

Opening Rally

The Sensex began trading at 81,327.29, gaining 327.89 points or 0.40 per cent. Similarly, the Nifty opened at 25,076.40, rising 90 points or 0.36 per cent. However, the initial buying momentum weakened as trading progressed, pushing both benchmarks into the red.

FII Support

V K Vijayakumar, Chief Investment Strategist at Geojit Investments, attributed the recent market rally to improving domestic and global conditions. He highlighted foreign institutional investor buying, reasonable valuations, declining crude oil prices, lower US bond yields and stronger corporate earnings. Vijayakumar expects foreign investor interest to continue, potentially supporting large-cap stocks.

Sectoral Performance

Banking stocks opened higher despite the subsequent weakness in benchmark indices. Nifty PSU Bank gained 0.60 per cent, while Nifty Private Bank advanced 0.62 per cent. Nifty Metal rose 0.26 per cent and Nifty Auto gained 0.10 per cent. Meanwhile, Nifty IT opened 0.38 per cent lower.

Broader Markets

The Nifty 100 initially gained 0.33 per cent, while Nifty Midcap 100 advanced 0.06 per cent. However, Nifty Smallcap 100 slipped 0.08 per cent, indicating mixed investor sentiment.

Global Cues

Asian markets largely traded higher, with Japan's Nikkei surging over 3 per cent and Taiwan's benchmark jumping 5.66 per cent. Brent crude traded near $98.22 per barrel.

Market Outlook

Investors will monitor foreign fund flows, corporate earnings and global developments for further direction. The Nifty's ability to reclaim 25,000 will remain an important near-term market indicator.