Key Highlights

  • Weak start: Nifty opened 75.60 points, or 0.33%, lower at 23,064.90, while Sensex fell over 150 points to 73,734.83.
  • Top losers: Hindalco, Bajaj Finance, Kotak Mahindra Bank, Grasim and Shriram Finance fell up to 1.76%.
  • Sector drag: Nifty Realty slipped over 1%; financials, private banks, auto, cement and FMCG fell nearly 1% each. Pharma edged higher.
  • Global pressure: Brent crude rose over 2% to $106.69 and the US 10-year yield stood at 5.2%.
  • Levels to watch: Analysts see Nifty support at 22,900–23,000 and resistance at 23,250–23,300.

After seven straight weeks of losses, Indian equity markets began the new week on the back foot. Domestic benchmarks opened lower on Monday, weighed down by persistent global headwinds, with financial, realty and auto stocks leading the declines.

Nifty opened 75.60 points, or 0.33%, lower at 23,064.90. Sensex fell more than 150 points, or 0.22%, to 73,734.83.

Both indices had ended Friday's session in the green, with Nifty at 23,140 and Sensex at 73,895, but that small rebound did not carry into Monday.

Losers and Sectors

Among Nifty stocks, Hindalco Industries, Bajaj Finance, Kotak Mahindra Bank, Grasim Industries and Shriram Finance were the top losers, falling up to 1.76%.

Realty led the sectoral weakness, with Nifty Realty down over 1%. Cement, financial services, private banks, auto and FMCG indices also fell nearly 1% each. Nifty Pharma was among the few gainers, inching higher.

What's Weighing on the Market

Analysts said domestic economic resilience and improving corporate earnings were being overshadowed by external pressures, especially elevated crude prices and US bond yields.

"Brent crude at $106 and the US 10-year yield at 5.2 per cent are strong headwinds that are weighing on markets," the analysts said.

Brent crude rose more than 2% to $106.69, while US WTI crude gained over 1% to $93.82.

Why It Matters: The Pressure Is Building, Not Easing

Compared with last week, the key pressure points have moved in the wrong direction. Last week, the US 10-year Treasury yield was reported above 5.10%; on Monday, analysts cited 5.2%. Brent, which stayed above $105 for most of last week before moderating on Friday, is back up above $106.

The Nifty's support zone has also shifted lower. Last week analysts pegged immediate support at 23,000; now they see it in the 22,900–23,000 range.

The FPI Split: Selling Large, Buying Small

Foreign portfolio investors turned sellers again in September after buying in July and August, according to analysts. But the selling is not uniform. Foreign investors appear to be buying midcap and smallcap stocks despite elevated valuations, while selling largecaps.

This helps explain why the broader market has continued to show momentum even as the headline indices, dominated by largecaps, keep slipping.

Global Cues

Asian markets were mostly negative, with Japan's Nikkei, Hong Kong's Hang Seng and the Jakarta Composite falling up to 2%. Overnight, Wall Street ended higher, with the S&P 500 up 0.51% and the Nasdaq up 0.48%.

What to Watch Today

According to market experts, Nifty's immediate support is at 22,900–23,000, while resistance lies at 23,250–23,300. The index is likely to stay volatile as traders watch these levels for signs of stability.

The domestic backdrop has its own complication this week. The three-day nationwide bank strike called by the United Forum of Bank Unions is scheduled to begin today and run until September 30, coinciding with the half-yearly closing of banks.

The opening bell suggests the eighth week could begin much like the last seven. Until crude and US yields ease, or foreign investors return to largecaps, domestic strengths are likely to stay in the background.

With inputs from IANS.