Key indices register decline in stock market opening

MUMBAI: The stock market embarked on a cautious note as trading commenced on Monday, witnessing a decline in key indices, setting the tone for the day's trading activities.

At the opening bell, the Sensex, India's benchmark index, experienced a dip of 443.54 points, starting at 64,874.22.

Simultaneously, the Nifty, another significant index, displayed a decline of 165.60 points, commencing at 19,274.75 at the time of reporting.

Market dynamics during the early trading hours revealed a ratio of four advancing stocks to 46 declining ones, with a solitary stock maintaining its stability, mirroring the cautious sentiment that enveloped the market.

Nifty-listed companies demonstrated their mettle as top gainers in the initial trading phase. ONGC, Dr Reddy's Laboratories, Sun Pharma, and Infosys showcased their positive momentum, emerging as frontrunners and garnering early favour from the market.

Conversely, Adani Enterprises, Adani Ports, Apollo Hospitals, Tata Motors, and Hindalco found themselves on the other end of the spectrum, grappling with losses and marking the list of top losers during the initial hours of trading.

The fluctuating landscape of the stock market reflects the intricacies of investor sentiment and market trends.

The early trading session provides a glimpse into the diverse fortunes of various sectors and companies, offering insights into the dynamics that will shape the trading day ahead.

Varun Aggarwal, Founder and MD, Profit Idea, said, “This consolidation downside range on Indexes can be good opportunity to pick multibagger stocks. OI data suggest strong put writing at 19200-19000 levels on Nifty, which suggests limited downside and potentially new highs soon. Stay focused on blue chip stocks with limited risk strategies.”

“Correction on Index is just a retracement after a strong up move. This should be utilised by investors to cherry-pick good stocks available at discount. Metals, Mid Cap IT, Media, Oil & Gas & Infra sees strong performances. Selected stocks in this space can be good bet for medium term”, said Aggarwal.

For the third consecutive time, the Reserve Bank of India unanimously opted to retain the repo rate at 6.5 per cent during its three-day monetary policy committee meeting, as most financial industry experts had predicted.

The repo rate is the interest rate at which the RBI loans money to other banks.

The country's retail inflation forecast for 2023–2024 has been raised upward by the central bank to 5.4 per cent from its prior expectation of 5.1 per cent from the June monetary policy meeting. It predicted that headline inflation will rise by a "substantial increase" soon.

As the trading day unfolds, investors and analysts will closely monitor the market's movement, seeking cues and patterns that could impact their investment decisions.