Benchmark stock market indices extended their decline on Monday, continuing the negative momentum from the previous session, as fresh tariff threats from US President Donald Trump added to global trade uncertainty.
As of 9:24 a.m., the S&P BSE Sensex was down 400.82 points at 84,701.87, while the NSE Nifty50 had shed 134.80 points to settle at 25,825.75. Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, attributed the weakness to investor fatigue after the market failed to sustain its recent all-time highs in the absence of new positive triggers.
“The fact that the vast majority of retail investors haven’t participated in this narrow rally dominated by a few largecaps makes the retail disillusionment heavy,” he said. The market opened on a weak note, with only a handful of stocks managing to stay in positive territory while the majority of the Sensex constituents traded in the red.
Among the early gainers, Hindustan Unilever topped the list with a gain of 0.43%, followed by Bharti Airtel, which rose 0.25%. Titan Company edged up 0.05%, Sun Pharmaceutical Industries added 0.03%, and State Bank of India was marginally higher by 0.27%. These were the only notable pockets of green in an otherwise subdued opening.
In contrast, several heavyweight stocks faced sharp selling pressure, underscoring the broader cautious sentiment. Asian Paints emerged as the biggest loser, declining 2.38%, followed by Trent, which fell 2.06%. Mahindra & Mahindra and Tata Steel both slipped 1.16%, while Tata Consultancy Services dropped 1.12%. The widespread losses across sectors highlighted a market under stress, with participants adopting a wait-and-watch approach in early trade.
Dr. Vijayakumar further explained, “Even when the Nifty set a new record, 320 stocks in the NSE 500 were trading below their peaks, leaving retail investors with portfolios dominated by mid and small caps unhappy. Consequently, we are seeing further selling in the mid and smallcaps, pushing their prices down, while the strong largecaps which led this rally are remaining resilient.”
He added, “Briefly, what we are witnessing now is fundamentals exerting influence on the market. Overvalued stocks in the mid and smallcap segments are getting dumped, impacting their share prices. There is some more time for this trend to play out. Further correction in midcaps will open up opportunities for long-term investors to slowly accumulate high-quality growth stocks in this segment. Defence stocks now offer value.”
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