Indian Markets Trade Cautiously as Defence Stocks Surge Amid Venezuela Crisis
Indian equity markets traded cautiously on Monday with Sensex declining 155.95 points to 85,606.06 and Nifty falling 27.70 points to 26,300.85, despite hitting a record high of 26,373.20 early in the session. Defence stocks emerged as top performers, gaining 1-2.4% amid the Venezuela crisis, while IT stocks faced broad-based selling pressure with major companies declining 1-2%. Market breadth remained weak with more stocks declining than advancing, though 126 stocks touched 52-week highs indicating selective strength in certain segments.
*this image is generated using AI for illustrative purposes only.
Indian equity benchmarks traded on a cautious note on Monday due to a lack of clear directional cues amid the Venezuela crisis. Weakness in IT stocks and lingering concerns over potential additional US tariffs weighed on sentiment, offsetting selective buying driven by positive corporate updates and expectations of improved quarterly earnings.
Market Performance Overview
The benchmark indices showed mixed performance during Monday's trading session. Despite the overall cautious sentiment, Nifty 50 managed to hit a record high early in the day before retreating.
| Index | Closing Level | Change (Points) | Change (%) |
|---|---|---|---|
| Sensex | 85,606.06 | -155.95 | -0.18% |
| Nifty 50 | 26,300.85 | -27.70 | -0.11% |
| Small-cap Index | - | - | +0.83% |
| Mid-cap Index | - | - | +0.12% |
The small-cap index outperformed significantly with a 0.83% gain, while the mid-cap index posted a modest 0.12% increase, indicating strength in broader market segments despite benchmark weakness.
Sectoral Performance and Key Movers
Sectoral performance remained largely positive, with all indices except IT and oil & gas trading in positive territory. Defence, consumer durables, and media sectors emerged as top performers, soaring 1-2.4%.
Top Nifty 50 Gainers:
- Bharat Electronics Limited (BEL)
- Nestle India
- Eicher Motors
- Maruti Suzuki
- Asian Paints
Top Nifty 50 Decliners:
- HCL Technologies
- Infosys
- Wipro
- HDFC Bank
- Oil and Natural Gas Corporation (ONGC)
Defence Stocks Lead Market Rally
Defence stocks gained significant traction amid US raids on Venezuela, with the sector posting strong gains across the board.
| Stock | Performance |
|---|---|
| MTAR Technologies | +3-4% |
| Data Patterns | +3-4% |
| Solar Industries | +3-4% |
| Bharat Dynamics Limited (BDL) | +3-4% |
| Bharat Electronics Limited (BEL) | +3-4% |
| Paras Defence | +3-4% |
IT Sector Faces Pressure
The IT sector experienced broad-based selling pressure, with major technology companies declining across the board.
| Company | Performance |
|---|---|
| HCL Technologies | -1 to -2% |
| Infosys | -1 to -2% |
| Wipro | -1 to -2% |
| Persistent Systems | -1 to -2% |
| Tech Mahindra | -1 to -2% |
Market Breadth and Circuit Movements
Market breadth indicated selling pressure outweighed buying interest, with 1,687 stocks declining against 1,345 advancing out of 3,134 stocks traded on the National Stock Exchange. However, 126 stocks touched their 52-week highs compared to 69 stocks hitting 52-week lows, suggesting selective strength despite overall market softness.
Notable 52-Week High Achievers:
- Ashok Leyland
- AU Small Finance Bank
- Bank of Baroda
- Bharat Forge
- Coal India
Circuit movements showed 54 stocks locked in the upper circuit while 57 stocks hit the lower circuit, reflecting mixed sentiment across individual securities.
Mid-cap and Small-cap Highlights
Among mid-cap stocks, several companies posted strong gains of 3-4%, including Bharat Dynamics, Voltas, Union Bank of India, Motilal Oswal Financial Services (MFSL), Astral, and Blue Star. Conversely, Premier Energies, Waaree Energies, Mahindra & Mahindra Financial Services, Tube Investments, and Housing and Urban Development Corporation (HUDCO) declined 2-5%.
Small-cap stocks showed notable volatility, with Ola Electric, PGEL, Cyient, Amber, and Data Patterns surging 4-7%, while Devyani International, Afcons Infrastructure, JBM Auto, NBCC, and Gland Pharma dropped 1-3%.
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