 |
|
The Indian stock market experienced a day of sideways trading on Monday, with benchmark indices closing marginally lower. While the market showed some initial signs of strength, profit booking in PSU bank shares led to a decline in the overall sentiment. The Nifty 50 index ended the day at 19,622.90, down by 0.05%, while the Sensex closed at 65,871.22, down by 0.12%.
The decline in PSU bank shares was attributed to profit booking after a recent rally. These stocks had witnessed significant gains in the previous weeks, primarily driven by optimism surrounding government-led initiatives in the banking sector. However, investors decided to book profits on Monday, leading to a sell-off in these shares.
Despite the weakness in PSU bank shares, other sectors like IT and FMCG remained resilient. The IT sector benefited from the strong performance of global tech giants, while FMCG companies continued to perform well on the back of robust consumer demand. Overall, the market displayed a lack of clear direction, with investors cautious about the upcoming economic data releases and global market trends.
Going forward, investors will be keeping a close eye on the inflation numbers and the rate decisions of major central banks. The performance of the global markets, particularly in the US and Europe, will also be a key factor influencing the Indian market. With the festive season around the corner, consumer spending is expected to increase, which could provide further support to the market. However, rising input costs and supply chain disruptions remain key concerns for businesses and investors alike.