Indian markets ended Monday’s volatile session little changed as gains in financials, realty and select heavyweight stocks offset sharp losses in PSU banks and a few index heavyweights. Investors remained cautious ahead of key US inflation data later this week, while elevated crude oil prices continued to keep risk appetite in check.
The BSE Sensex settled 43.27 points, or 0.06%, higher at 78,542.44, after swinging between an intraday high of 78,676.98 and a low of 78,298.92. The NSE Nifty closed 13.15 points, or 0.05%, higher at 24,583.80.
India VIX, the market’s volatility gauge, ended 0.49% higher at 12.22, indicating investors remained cautious despite the benchmarks ending in positive territory.
Financials help benchmark indices recover
The market witnessed a sharp intraday recovery after slipping into the red during the morning session, with buying emerging in private financials and select large-cap stocks.
Nifty Financial Services gained 0.30%, while Nifty Private Bank rose 0.52%. Realty stocks outperformed the broader market, with the Nifty Realty index surging 1.35%. Consumer Durables advanced 0.36%, while IT, Metals and Media also ended in positive territory.
Among broader markets, the Nifty Midcap 100 climbed 0.61%, the Nifty Midcap 50 rose 0.70%, and the Nifty Midcap Select index gained 0.58%, indicating continued strength in mid-cap shares. The Nifty Smallcap 100, however, declined 0.23%, reflecting mixed participation beyond large-cap stocks.
PSU banks emerge as biggest laggards
PSU banking stocks remained under pressure throughout the session, with the Nifty PSU Bank index falling 1.68%, making it the worst-performing sector of the day. Healthcare, Pharma, Oil & Gas, FMCG and Auto indices also ended lower.
Among Sensex constituents, Titan emerged as the top gainer, rising 3.14%, followed by Bajaj Finance (+1.93%), Tata Steel (+1.17%), Asian Paints (+0.92%), Bajaj Finserv (+0.90%) and Infosys (+0.80%).
On the losing side, State Bank of India declined 2.25%, while Eternal fell 1.57%, NTPC slipped 1.52%, ITC lost 1.23%, Tech Mahindra dropped 1.08%, and Bharti Airtel shed 1.04%.
Market awaits key global triggers
Despite ending marginally higher, the session reflected investor caution as participants awaited the release of the US consumer inflation data later this week, which could influence the Federal Reserve’s interest rate outlook.
Persistent uncertainty over global crude oil prices and geopolitical developments also kept traders selective, resulting in a range-bound session with stock-specific action dominating the market.
Crude oil continues to trade at an elevated level of around $85 per barrel.
Vinod Nair, head of research at Geojit Investments, said, “Markets remained on a tight leash as uncertainty surrounding the Strait of Hormuz continued to temper risk appetite, even as encouraging corporate earnings lent support to broader sentiment. Globally, softer-than-expected US jobs data weakened the case for Fed tightening, shifting investor focus to upcoming US inflation readings for fresh direction on rates and bond yields.”
He added that a softer yield environment could revive interest in emerging markets and pave the way for stronger FII participation. Amid these global crosscurrents, India’s robust domestic growth engines and resilient economic fundamentals continue to stand out, providing a strong anchor for investor confidence.