On Monday, the Indian stock market ended in the red despite a promising start led by HDFC Bank’s gains. Both the Sensex and Nifty 50 indices dropped 73 points each, closing at 81,151 and 24,781, respectively, as market volatility and a significant sell-off in midcap stocks took hold. The Nifty Midcap 100 index tumbled by 972 points (1.73%) to 57,678, while the Nifty Smallcap 100 index dropped by 1.63%, closing at 18,766. The market breadth was negative, with the advance-decline ratio skewed 1:3 in favor of declines.
The midcap segment saw heavy losses, particularly in stocks like RBL Bank, which plunged 14% to a 52-week low after reporting disappointing Q2 results. IndiaMART dropped 17% following a brokerage downgrade tied to underwhelming Q2 performance, while PNC Infratech fell 20% after being barred from road ministry tenders for a year. In total, 36 of the Nifty 50 stocks ended the day in negative territory.
Tata Consumer Products led the losses in the Nifty 50, dropping 8% after weaker-than-expected Q2 earnings. Kotak Mahindra Bank saw a 4% decline due to a reduction in its net interest margin (NIM) on both a quarter-on-quarter and year-on-year basis. Bajaj Finserv, BPCL, and IndusInd Bank also posted losses exceeding 3%. Infosys, which had posted stable Q2 results, experienced profit booking that added to the market’s downward pressure. UltraTech Cement also ended lower after a slight earnings miss, though it managed to recover some of its intraday losses.
On the upside, HDFC Bank was the top gainer, rising 3% after strong Q2 results. Bajaj Auto followed suit with a 3% gain, buoyed by positive commentary from its management. Other notable gainers included Asian Paints, Mahindra & Mahindra, and Eicher Motors, which posted gains of up to 4.3%. In the broader market, Tejas Networks stood out, surging 10% to a three-month high after reporting robust Q2 earnings. Garden Reach Shipbuilders rose 2% after receiving a Letter of Intent for a Rs 491 crore project from the Ministry of Defence.
Despite the ongoing Q2 FY25 earnings season, investor sentiment remained weak as many companies posted subdued results. Stocks such as CG Power, which had earlier surged, fell 13% following disappointing earnings. MRPL, L&T Finance, Mastek, and Swaraj Engines also reacted negatively to their respective results. However, a few bright spots emerged with Oberoi Realty, Netweb Technologies, and MCX posting positive Q2 results, offering some relief in an otherwise challenging trading session.
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