For the fourth straight session, India’s benchmark indices painted a grim picture at market open, with the Nifty 50 and BSE Sensex tumbling amid heavy pressure on metal shares. The downturn reflects mounting concerns over global economic headwinds and softening demand for industrial commodities.
Metal stocks emerged as the biggest losers, with the sector index sliding more than 2% right from the start. Companies such as Vedanta, APL Apollo Tubes, and Steel Authority of India (SAIL) recorded sharp declines, fueled by falling international prices and supply chain disruptions. This sector-specific rout pulled the overall market lower, with Nifty opening below 24,400 and Sensex shedding over 500 points.
Market participants highlighted a confluence of negatives: disappointing Chinese factory data released over the weekend, persistent strength in the US dollar, and hawkish undertones from global central banks. Domestic flows weren’t encouraging either, as retail investors stayed on the sidelines following recent volatility.
In contrast, select defensive pockets like FMCG and pharma showed resilience, with names like Hindustan Unilever and Sun Pharma bucking the trend. However, the banking index lagged, weighed down by rising non-performing asset worries.
Experts advise a wait-and-watch approach. ‘Metals are highly sensitive to global cycles, and current trends suggest more pain ahead unless there’s a stimulus surprise from Beijing,’ noted a leading brokerage report. Key levels to monitor include Nifty’s 24,300 support; a hold here could spark a technical rebound. Investors are bracing for the RBI’s next moves, hoping for dovish signals to restore confidence. This extended weakness underscores the market’s vulnerability in an interconnected world economy.
