Benchmark stock market indices continued their decline, stretching the negative trend from the previous session due to fresh tariff threats by US President Donald Trump. The S&P BSE Sensex dropped by 400.82 points to 84,701.87, while the NSE Nifty50 decreased by 134.80 points to 25,825.75 by 9:24 am.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, mentioned that the market’s failure to sustain recent record highs and the absence of new catalysts for a rally have led to investor weariness. He noted that the majority of retail investors did not participate in the recent market surge, mainly driven by a few large-cap stocks, causing dissatisfaction among retail investors.
At the market opening on Monday, only a handful of stocks managed to stay positive, with most of the Sensex components moving into negative territory. Leading the early gainers were Hindustan Unilever, up by 0.43%, followed by Bharti Airtel with a 0.25% increase and Titan with a 0.05% gain.
Conversely, several heavyweight stocks experienced significant declines, indicating widespread sentiment pressure. Asian Paints recorded the largest drop at 3.38%, followed by Trent at 2.06%, Mahindra & Mahindra at 1.16%, Tata Steel down by 1.16%, and Tata Consultancy Services declining by 1.12%. The broad decline across various sectors signaled market stress, prompting investors to adopt a cautious stance during early trading.
Vijayakumar highlighted the disparity between the Nifty’s record high and the underperformance of 320 stocks in the NSE 500 index, resulting in a portfolio imbalance for retail investors, particularly in mid and small-cap stocks. He suggested that the ongoing correction in mid-caps could present opportunities for long-term investors to accumulate quality growth stocks, emphasizing the value potential in defense stocks.
The expert’s views expressed in this article are personal opinions and recommendations and do not represent the India Today Group’s stance. It is advised to consult with a qualified financial advisor before making any investment decisions.