Indian Stock Markets Open Week with Losses Amid Earnings Season

Indian stock markets opened the week negatively with major indices NSE Nifty 50 and BSE Sensex dropping. Market experts attribute future market trends to the ongoing earnings season and anticipate significant moves ahead of the Union Budget announcement on July 23rd.

Indian stock markets commenced the fresh week on a negative note on Monday, with both major indices declining during the opening trade. The NSE Nifty 50 index fell by 30 points to 24,300, while the BSE Sensex dropped 150 points to 79,841. Notably, all other indices on the National Stock Exchange, except Nifty 50, began trading on a positive note.

Market experts suggest that the earnings season will drive market directions in the coming weeks. They note that markets are currently digesting last week's rally. 'Earnings season will determine the market direction for the next few weeks. Union Budget is expected to be rolled out on July 23rd. Globally, with a soft US labor market and rising unemployment, the probability of a Fed rate cut in September has gone up to 78 percent. US corporate earnings will be key drivers of global markets this week, with good earnings growth factored in,' explained Ajay Bagga, a banking and market expert.

Bagga further added, 'Any negative surprise on earnings in India or the US will lead to a heavy sell-off in those counters, as we have seen with muted operational results in some index heavyweights leading to sharp falls in those stocks. Overall markets may be in a wait-and-watch mode and try to digest the sharp rise of the last few weeks.' Though several sectoral indices faced selling pressure, including Nifty Bank, Nifty Financial Services, Nifty PSU Bank, Nifty Private Bank, and Nifty Consumer Durables, other indices opened positively.

In the Nifty 50 list, the top gainers of the day included Tata Motors, Cipla, Apollo Hospitals, Dr. Reddy's Laboratories, and Mahindra & Mahindra. Conversely, the top losers were Titan Company, Shriram Finance, Asian Paints, Bajaj Auto, and Divi's Laboratories. Reflecting this negative sentiment, Asian markets also saw declines, with the Asia Dow dipping by 0.38 percent, Nikkei 225 slipping by 0.09 percent, Hang Seng dropping significantly by 2.06 percent, and Shanghai Composite losing 0.26 percent on Monday morning.

On the last trading day of the previous week, Foreign Institutional Investors (FIIs) were net buyers, purchasing shares worth Rs 1,241.33 crore. Conversely, Domestic Institutional Investors (DIIs) were net sellers, offloading shares valued at Rs 1,651.36 crore.

(With inputs from agencies.)