Taking Stock: Sensex sheds 1,124 pts; Nifty ends below 22,800, sinks to 6-month low

According to fresh market updates, Indian key market indices started the week on a weak note, with the Nifty slipping below 22,800 intraday amid broad-based selling, extending their seven-week losing streak.

Selling pressure intensified as the session progressed, with the Nifty moving closer to a six-month low, weighed down by weak global cues, elevated oil price marks and bond yields, persistent FII selling and heightened geopolitical uncertainty following a stalemate in US-Iran peace talks

At close, the Sensex was down 1,124.02 points or 1.52 percent at 72,771.72, and the Nifty was down 360.25 points or 1.56 percent at 22,780.25.

Broader markets additionally ended weak with Nifty midcap index falling 1.6 percent and smallcap index declining 1.8 percent.

Biggest Nifty losers were Jio Financial, Tata Motors Passenger Vehicles, L&T, Adani Enterprises and Adani Ports, while gainers included Tech Mahindra, Dr Reddy's Labs and Infosys.

All the sectoral indices ended in the red with PSU Bank index down 3%, Telecom index shed 2.3%, while Energy, Infra, FMCG, Realty, Private Bank, Metal and Oil & Gas down more than 1% each.

More than 190 stocks touched 52-week low, including IRB Infra, India Cements, Bank of Baroda, Aditya Birla Lifestyle Brands, Tata Consumer Products, Ambuja Cements, CESC, Tata Motors Passenger Vehicles, Eris Life, Power Finance, HUL, General Insurance, Ircon International, Jio Financial, ACC, Reliance Power, Bayer CropScience, P&G Hygiene, Reliance Industries, SJVN, among others. Click to View More

Among individual stocks, Unichem Laboratories stock price declined 2% after the USFDA issued five observations following an inspection. Zydus Lifesciences touched a 52-week high after its facility received zero observations from the USFDA.

Prestige Estates Projects declined 1% after a subsidiary withdrew its draft red herring prospectus (DRHP).

Marine Electricals (India) rose 3% after receiving orders worth ₹250.78 crore. GE Shipping advanced 2% after Nomura initiated coverage with a 'Buy' rating and a target price of ₹1,965 per share.

The Indian indian rupee reversed its previous session upside and ended 16 paise softer at 95.98 per dollar on Monday, compared with Friday’s close of 95.82. Outlook for September 29

Shrikant Chouhan, Head Equity Research, Kotak Securities

Today, the key market indices corrected sharply. The Nifty ended 360 points softer, while the Sensex declined 1124 points. Among the sectors, all major sectoral indices traded in negative territory, with the PSU Bank index losing the most, shedding 3.15 percent.

Technically, after opening weak, the market eased below the 23,000/73500 mark, and selling pressure intensified following the breakdown. In addition, a bearish candle on the daily chart and a softer-top formation on the intraday chart indicate further softness from current marks.

We are of the view that the market’s short-term trend stays weak. That stated, due to temporarily oversold conditions, we could see a quick pullback surge from current marks. For day traders, 22,800/72800 is the key level to watch. Below this level, weak sentiment is likely to persist, with backing at 22,650–22,550/72500-72000. On the upside, a move above 22,800/72800 could lead to a bounce toward 23,000–23,050/73200-73500.

Siddhartha Khemka – Head of Research, Wealth Management, Motilal Oswal Financial Services

Indian markets are likely to stay weak in the near term, tracking weak global cues, elevated Brent crude prices and rising global bond yields. Brent crude surged over 3.8% to around USD 108/bbl, while US President rejected an Iranian proposal to reopen the Strait of Hormuz, adding to geopolitical and global supply concerns.

Trump has additionally indicated that a potential peace deal or resolution with Iran could come only after the US midterm elections in November, limiting near-term hopes of de-escalation. Renewed security threats from Houthi rebels in the region are further keeping oil and inflation risks elevated.