The Indian equity market concluded a volatile trading session on Monday with a flat finish, as a late-session sell-off in IT stocks canceled out earlier gains driven by auto and metal sectors. The domestic market opened on a strong note, buoyed by positive sentiment from recent GST reforms, optimism about India-US relations, and rate cuts announced by major automakers.
The Sensex briefly surged by nearly 400 points in intraday trading, reaching a high of 81,171.38, before losing steam and closing just 76.54 points higher at 80,787.30. Similarly, the Nifty 50 closed up by 32.15 points, settling at 24,773.15.
Vinod Nair, Head of Research at Geojit Financial Services, noted that the market’s inability to hold on to its early gains reflected a “buy-on-dips, sell-on-rallies” strategy, indicating a sense of caution among investors.
Sector and Stock Performance
Auto and metal stocks were the top performers, driven by expectations of a demand revival. The Nifty Auto index surged by 3.30%, with notable gains from Tata Motors and Mahindra & Mahindra. Nifty Financial Services and Nifty Bank also closed in the green, up by 0.21% and 0.13% respectively.
On the flip side, the IT sector experienced persistent selling pressure, leading the Nifty IT index to fall by 0.94%. This decline was attributed to continued global uncertainties. Leading losers included IT heavyweights like HCL Tech, Tech Mahindra, and TCS.
The broader market indices, including the Nifty Small Cap 100 and Nifty Midcap 100, also edged higher, suggesting a mixed but generally positive sentiment outside of the IT space.
