Stock market ends lower on Monday; Investors eye Hyundai listing and RBI minutes

The stock market closed in the red on Monday, with the Sensex falling by 73.48 points to settle at 81,151.27, while the Nifty declined by 72.95 points, ending at 24,781.10.

Among Nifty-listed companies, 12 stocks recorded gains, while 37 ended the day in negative territory.

Bajaj Auto, HDFC Bank, Asian Paints, Mahindra & Mahindra (M&M), and Eicher Motors emerged as the top gainers, while Tata Consumer Products, Kotak Bank, Bajaj Finserv, Bharat Petroleum Corporation Limited (BPCL), and IndusInd Bank were the biggest losers of the session.

Commenting on the market trend, V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, "With the US markets setting new record highs, the global stock market rally appears intact. The steady decline in crude and stability in the US bond yields impart resilience to the stock market despite the lingering tensions in the Middle East."

He further said, "The hope raised by the Chinese stimulus and the cheap valuations of Chinese stocks have the potential to sustain the 'Sell India, Buy China' tactical trade for some more time. This presents an opportunity for medium to long-term investors. Of the total FII AUM of $930 billion about 28% is financials which are facing the brunt of FII selling. The sustained FII selling has rendered the valuations of financials attractive in an otherwise overvalued market."

He noted that foreign institutional investors (FIIs) have been selling Indian financials, which make up about 28% of the total FII assets under management (AUM) of $930 billion.

Looking ahead, Hyundai India's market debut on Tuesday will be closely watched, following a modestly oversubscribed IPO last week.

Investors are also awaiting the Reserve Bank of India's monetary policy meeting minutes on Wednesday and the HSBC Manufacturing, Services, and Composite PMI data on Thursday for fresh market cues.

Shriram Subramanian, Founder and Managing Director of InGovern Research Services, remarked, "Markets are caught in indecision as bulls and bears battle it out. Mixed bag results from some index stock companies. HDFC Bank results were positive. The Hyundai listing on Tuesday will be keenly watched."

As market participants navigate mixed signals from corporate earnings and global developments, the upcoming events are expected to provide crucial insights that could influence future market direction.