Indian benchmarks extended their winning streak for the fourth session, helped by Brent crude falling below $101 per barrel. While the Nifty crossed 23,400, market breadth stayed weak with mid and small-cap stocks facing selling pressure. Investors are currently favoring domestic defensive sectors like pharma and FMCG over IT and metals.
Indian equity markets continued their winning streak for the fourth consecutive session on Monday. The Nifty 50 closed above the 23,400 mark, driven by a decline in global crude oil prices. Brent crude prices dipped below the $101 per barrel mark, which is a positive sign for the Indian economy as it helps lower import costs and eases pressure on corporate profit margins.
While the main indices are rising, the broader market paints a different picture. Market breadth remains weak, with many mid-cap and small-cap stocks seeing profit-booking. Within the Nifty 500 index, 285 stocks ended the day in the red, showing that the recent rally is mostly limited to a few large heavyweight companies.
Investors are currently rotating their money into defensive sectors, which are often viewed as safer during periods of uncertainty. Indices for pharma, healthcare, realty, and FMCG sectors recorded gains of over 1 per cent. In contrast, sectors like IT and metals faced selling pressure, which limited the overall market gains. Among the Nifty 50 constituents, HCL Technologies and Eternal were among the top performers, while Bharti Airtel and Adani Ports faced selling pressure.
Institutional activity shows a mixed trend. Domestic Institutional Investors (DIIs) remained active buyers, investing over ₹1,000 crore into the market, but Foreign Institutional Investors (FIIs) continue to be net sellers, which remains a hurdle for a more sustained rally. The Indian rupee also showed slight appreciation against the U.S. dollar, supported by the softening oil prices.
Technically, the Nifty 50 faces resistance in the 23,500 to 23,600 range. For the market to break out of its current phase, the index will need to close decisively above 23,600. On the downside, 23,200 is currently acting as a primary support level. Investors should continue to monitor crude oil price movements and the broader earnings cycle, as the market is expected to remain range-bound until these factors show more clarity.