Monday blues for markets ahead of budget; Nifty, Sensex close lower – Market News

Indian stock indices closed lower on Monday, a day ahead of the budget. Nifty 50 fell 21.65 points or 0.09 per cent from its previous close to close the day’s trade at 24,509. The 30-strong index also closed 102.57 points or 0.13 per cent lower at 80,502. While Wipro lost over 9 per cent, Kotak Mahindra fell 3.5 per cent, Reliance Industries saw a sell-off and fell 3.5 per cent along with other stocks.

Sectoral index shows opposite trend

Nifty Bench rose 14.80 points or 0.03% to close the session at 52,280.40. Nifty Midcap 100 rose 716.35 points or 1.28% to close the day’s trading at 56,624.65. On the broader markets, small-cap and mid-cap stocks closed in the green.

Sectoral draggers

Among the sectoral indices, Nifty Oil& Gas and Relaty took the hit as Reliance Industrials swept the headline indices. However, Nifty AutoHealthcare and pharmaceuticals rose, holding the markets up.

“The conservative economic growth forecast for FY25 presented in the economic survey has introduced some spikes in volatility ahead of the Budget. Further, understated Q1 results of certain index heavyweights such as Reliance Industries have added to concerns of a slowdown in earnings growth in FY25. While the Budget is expected to be supportive, investors will be watching closely to see if it continues to resonate given high valuations and the risk of an earnings downgrade,” said Vinod Nair, Head of Research at Geojit Financial Services.

Volatility will remain high as all eyes will be on the Union Budget on Tuesday. “We therefore maintain a cautious stance and recommend a hedged approach. Traders should look for buying opportunities in low beta counters, especially in defensive sectors, and remain selective in other areas,” said Ajit Mishra, Senior Vice President of Research, Religare Broking.

Nifty Bench

“Bank Nifty closed with a small body candlestick on the daily chart, just above the support at 52,200. Call writers were active at higher strike prices, indicating limited upside potential. Despite this, Bank Nifty managed to close above the 21-day EMA, indicating resilience in the underlying trend. The view for Bank Nifty remains sideways or range-bound until it breaks important levels, with support at 52,000 and resistance at 52,800,” said Rupak De, Senior Technical Analyst, LKP Securities.