Sensex slips 100 pts, Nifty below 25,650; financial and auto stocks lead decline

Indian benchmark indices, Sensex and Nifty, opened lower on Monday, weighed down by losses in financial and auto stocks. This came despite improved global risk sentiment from easing Middle East tensions and a sharp rebound in foreign inflows that has helped revive investor confidence.

The BSE Sensex shed 123.25 points, or 0.15%, to open at 83,935.65, while the NSE Nifty declined 30 points, or 0.12%, to open at 25,607.80.

The Sensex and Nifty ended last week in positive territory, supported by improving sentiment and easing geopolitical tensions. Both benchmarks now trade just around 2.5% below their record highs hit in September.

On the sectoral front, auto and financial stocks were the key drags on the benchmarks, with the Nifty Auto index slipping 0.4% and Nifty Financial Services edging down 0.1%.

Within the 30-share Sensex pack, top losers included Mahindra & Mahindra, Bharti Airtel, NTPC, HDFC Bank, Kotak Mahindra Bank, ICICI Bank, and Axis Bank, with declines ranging from 0.4% to 1.4%.

Among individual stocks, Torrent Pharma shares rose 4% after the company agreed to buy a controlling stake in J.B. Chemicals & Pharmaceuticals in a major acquisition worth Rs 11,917 crore.Meanwhile, shares of Waaree Energies rallied 3.4% after its U.S. arm secured a 540 megawatt (MW) solar module supply contract from a leading American developer of utility-scale solar and energy storage projects.Additionally, shares of public sector banks (PSBs) rose after the finance ministry directed them to monetise their investments in subsidiaries and joint ventures through stock market listings. Central Bank of India led the gains, rising 2.4%, followed by Canara Bank, Bank of Baroda, Bank of India, and Union Bank of India, which climbed 2.3% each. Indian Bank advanced 1.9%, Indian Overseas Bank gained 1.2%, while SBI rose 1%.

Expert View
Commenting on the broader market sentiment, Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said the overall market construct remains favourable, supported by strong global cues and easing geopolitical tensions. Vijayakumar noted that “with the S&P 500 and Nasdaq setting new record highs and most other markets in bullish mode, the market construct looks positive.” A sharp pullback in Brent crude to $67 and signs of potential trade agreements between the U.S. and key global partners have also bolstered investor confidence.

Vijayakumar said that recent gains in Indian equities have been driven by institutional accumulation in large-cap names such as HDFC Bank, ICICI Bank, Reliance Industries, and L&T. He added that continued weakness in the dollar index is aiding foreign institutional inflows, while retail optimism is sustaining flows into domestic funds. However, he cautioned that “while it makes sense to remain invested in this bull market, making fresh investments at elevated valuations would be risky.”

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