Benchmark indices opened on a subdued note on Monday, weighed down by weakness in financial services stocks.
After the latest lending norms issued by the Reserve Bank of India for banks extending credit to stock brokers. At 9:48 am, the S&P BSE Sensex was down 47.79 points at 82,578.97, while the Nifty 50 slipped 7.45 points to 25,464.75.
Market sentiment also remains cautious following last week’s sharp sell-off in IT stocks.
Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the pressure on the IT pack is likely to persist in the near term.
“The mild recovery in IT ADRs on Friday is unlikely to provide meaningful support. Institutional investors may continue trimming exposure to IT and rotate into segments such as financials, automobiles, capital goods, telecom and pharma, where earnings visibility is stronger,” he said.
He added that Brent crude hovering around $68 a barrel remains a key variable amid geopolitical tensions between the US and Iran, and investors should monitor oil price movements closely.
Analysts believe the ongoing volatility offers an opportunity for portfolio rebalancing toward sectors with stronger growth prospects. Despite near-term headwinds, the broader outlook for 2026 remains constructive, supported by improving fundamentals and valuations aligning closer to long-term averages.
Mid- and small-cap stocks, while relatively expensive compared to large caps, continue to post better-than-expected earnings, lending support to the broader market narrative.
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