Despite Mid-Session Recovery, Key Indices Edge Down

Mumbai: Benchmark BSE Sensex declined by 112 points, while Nifty fell for the ninth straight session on Monday following selling in blue-chips HDFC Bank and Reliance Industries (RIL). In a see-saw trade, the 30-share BSE benchmark declined by 112.16 points or 0.15 per cent to close at 73,085.94 as 18 of its components advanced and 12 declined. The index opened higher, but soon fell to the day’s low of 72,784.54 due to intense selling in large-cap stocks. The barometer staged a rebound in the second half amid positive Asian markets and hit a high of 73,649.72 before paring gains to close down. Extending losses to the ninth session, the NSE Nifty slipped 5.40 points or 0.02 per cent to settle at 22,119.30. The index slumped 120 points or 0.54 per cent to hit a low of 22,004.70 but later recovered most of the losses.

“The market experienced a gradual recovery from its intraday low, driven by improving economic growth, a rebound in consumption expenditure, and healthy expansion in the agricultural sector, which influenced investor sentiment. With valuations approaching oversold levels, domestic indicators suggest the potential for a rebound,” Vinod Nair, head (research), Geojit Financial Services.

The BSE smallcap gauge dipped 0.70 per cent, however, midcap index went up 0.25 per cent.

“Although output growth slowed to the weakest level since December 2023, overall momentum in India’s manufacturing sector remained broadly positive in February,” said Pranjul Bhandari, Chief India Economist at HSBC.

Among BSE sectoral indices, Energy (1.11 per cent), Financial Services (0.54 per cent), Bankex (0.28 per cent), Oil & Gas (0.50 per cent), and Services (0.49 per cent) were the losers.

“Global uncertainties and sustained foreign fund outflows continue to keep market participants cautious,” added Ajit Mishra, Sr V-P (research), Religare Broking Ltd.