Market Recap: Sensex & Nifty Extend Losses as Investors Turn Cautious Ahead of Fed Policy

The equity markets witnessed another volatile session on Monday, marking the second consecutive day of decline as global uncertainty and caution ahead of the US Federal Reserve’s monetary policy meeting weighed on sentiment.

The Sensex dropped 436.41 points to close at 84,666.28, while the Nifty fell 120.90 points to end at 25,839.65. Despite bouts of intraday recovery, the broader sentiment remained weak.

 Key Draggers: IT & Consumption Stocks Under Pressure

Asian Paints emerged as the day’s biggest loser on the Nifty, falling 4.60% to ₹2,793.70, reflecting broad weakness in consumption-linked stocks.

The IT sector also came under selling pressure, driven by concerns over global spending and currency movements:

• Tech Mahindra: -1.90% (₹1,561.50)

• HCL Technologies: -1.82% (₹1,657.90)

• Wipro: -1.53% (₹257.39)

Kotak Securities’ Shrikant Chouhan noted that the session was marked by “roller‑coaster activity,” with the Nifty slipping 121 points and IT emerging as the weakest sector.

 Top Gainers: Select Leaders Buck the Trend

Despite the market weakness, a few stocks managed to deliver gains:

• Eternal: +2.28% (₹291.75)

• Titan Company: +1.94% (₹3,840.10)

• Adani Enterprises: +1.53% (₹2,250.00)

• IndiGo: +1.31% (₹4,988.00)

• Shriram Finance: +1.17% (₹844.00)

These stocks benefited from sectoral resilience, strong fundamentals, and selective buying interest.

Broader Market Rebound: Small‑Caps Stage a Comeback

After several sessions of weakness, the broader markets finally showed signs of revival:

Market Breadth Turns Positive

• 2,550 stocks advanced,

• 1,625 declined on the BSE.

• The advance‑decline ratio jumped to 1.68, the highest since November 26.

Index Performance

• Nifty Midcap 100: +0.32% (59,676.20)

• Nifty Smallcap 100: +1.14% (17,245.80)

This rebound indicates renewed interest in the broader market space despite the volatility in benchmark indices.

 What’s Driving the Market Mood?

Investors are treading cautiously due to:

• The upcoming US Federal Reserve policy decision

• Continuous FII selling

• Pressure on high‑valuation segments

• Strength in select domestic sectors like PSU banks (+1.25%)

With global uncertainty lingering, markets may remain choppy, but domestic resilience continues to support selective sectors and themes.

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