The Indian equity market closed in the red on Monday, January 5, snapping its recent momentum despite firm global cues, as investors booked profits in select heavyweight stocks amid rising geopolitical tensions following reports of US military action in Venezuela.
While global markets remained largely resilient to the developments in Venezuela, domestic indices witnessed cautious trading. Asian markets rallied strongly, with Japan’s Nikkei and South Korea’s Kospi jumping over 3% each, while China’s Shanghai Composite gained more than 1%. European markets also traded higher, with Germany’s DAX up over 1%, and both FTSE 100 and CAC 40 in positive territory by the time Indian markets closed.
Back home, the Sensex declined 322 points (0.38%) to settle at 85,439.62, while the Nifty 50 fell 78 points (0.30%) to close at 26,250.30. Broader markets outperformed frontline indices, with the BSE Midcap index edging up 0.05% and the Smallcap index rising 0.07%.
Why markets fell
Benchmark indices slipped mainly due to profit booking in heavyweights such as HDFC Bank, Infosys, and Reliance Industries, as investors remained cautious ahead of the Q3 earnings season. Sentiment was also impacted by renewed concerns over US tariff warnings against India related to the purchase of Russian oil.
Top movers
Among Nifty 50 stocks, Nestle India, Bharat Electronics (BEL), and Eicher Motors emerged as the top gainers. On the downside, HDFC Bank, Wipro, and Infosys were among the biggest laggards, with over half the index constituents ending lower.
Sectoral performance
Sectoral indices ended mixed. Nifty Realty led the gains, rising over 2%, while IT stocks dragged, with the Nifty IT index falling more than 1.4%. Consumer Durables, FMCG, Media, and Metal indices posted modest gains, whereas Oil & Gas and Banking stocks underperformed. Nifty Bank ended marginally lower at 60,044.20.
Market activity
In terms of trading volumes, Vodafone Idea, Ola Electric Mobility, and YES Bank were the most active stocks on the NSE. Despite the weak broader sentiment, eight stocks surged over 15% on the BSE, including CSB Bank, Naksh Precious Metals, Goyal Aluminiums, and Tourism Finance Corporation of India.
The market breadth remained negative, with declines outpacing advances on the BSE. Meanwhile, over 200 stocks touched their 52-week highs, while more than 140 stocks hit 52-week lows during intraday trade.
Disclaimer: This article is for informational purposes only and does not constitute investment advice.
