The BSE Sensex experienced a reversal of early gains, closing 0.8% lower at 81,050 on Monday, marking its sixth consecutive session of losses. This decline is largely attributed to ongoing foreign fund outflows and escalating concerns over the conflict in the Middle East, which have left investors wary.
Amid uncertainties, market participants are adopting a cautious stance ahead of critical events in the United States this week, including key inflation data, the FOMC minutes, and the commencement of the earnings season, with major banks set to unveil their Q3 results on Friday. This atmosphere of caution is also prevailing in anticipation of domestic corporate earnings rorts.
Leading the declines, Adani Ports saw a significant drop of 4.7%, fueled by rising tensions in the Middle East that could jeopardize its operations at Israel’s largest port in Haifa. Other stocks facing losses included NTPC (-3.5%), PowerGrid (-2.9%), State Bank of India (-3.4%), Axis Bank (-2.3%), and Titan (-2.1%). In contrast, IT stocks showed resilience, buoyed by optimism regarding a potential soft landing for the US economy.
The main stock market index in India, the SENSEX, has risen 8,810 points or 12.20% since the start of 2024, according to trading on a contract for difference (CFD) tracking this benchmark index. Analysts forecast the BSE SENSEX Stock Market Index to trade at 82,361.94 points by the end of the current quarter, with an expectation to reach 76,953.15 in twelve months' time, based on global macro models and analyst predictions.