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The Indian equity markets began the week on a cautious note, with the benchmark BSE Sensex opening in the red on Monday. The index dropped by 246.38 points, or 0.31%, to trade at 79,459.53 in the early hours of trading, reflecting a broad-based sell-off across sectors.
The negative opening of the Sensex mirrors the growing concerns among investors over global economic uncertainties. Weak cues from Asian markets, coupled with fears of a potential slowdown in major economies, have weighed heavily on investor sentiment. The continuing volatility in crude oil prices and apprehensions about interest rate hikes by central banks worldwide have further exacerbated the situation.
Market analysts have attributed the decline to the dampened mood in the global markets, with traders exercising caution amid the lack of clear direction. The technology, banking, and auto sectors were among the worst hit in the morning session, contributing significantly to the index’s decline. Notable laggards included heavyweight stocks like Infosys, HDFC Bank, and Tata Motors, which saw selling pressure as investors opted to book profits.
The broader NSE Nifty also reflected the bearish trend, slipping below the psychological 19,000-mark in early trade. This decline indicates that the markets are likely to remain under pressure throughout the day, barring any positive triggers that could stem the downtrend.
Despite the subdued opening, some market experts believe that the ongoing corrections might offer attractive entry points for long-term investors, especially in sectors with robust growth prospects. However, they also caution against potential short-term volatility, urging investors to adopt a prudent approach in the current market environment.
As the trading session progresses, all eyes will be on the performance of key sectors and any developments on the global front that could influence market dynamics. The Sensex’s movement today will likely set the tone for the rest of the week.