The Indian stock markets continued to face selling pressure as the benchmark Nifty index extended its losing streak to the sixth consecutive session. On Monday, the Nifty plummeted below the crucial 50-day Exponential Moving Average (DEMA) on the daily chart, signaling a bearish trend. The Sensex also showed weakness, closing the day in the red, as investor sentiment remained cautious amid global and domestic uncertainties.
Sector Performance
Despite the broader market downturn, the pharma sector displayed resilience. While the pharma index closed in the red, several stocks within the sector outperformed, bucking the trend. This highlights the defensive nature of the pharmaceutical sector, which tends to remain stable during periods of market volatility. Market experts anticipate stock-specific action to persist within this sector, offering opportunities for investors to capitalize on individual performers.
Global Market Impact
While Indian markets remained under pressure, Asian markets painted a more optimistic picture. Major indices across Asia traded with a positive bias, posting significant gains in the day’s session. The upbeat sentiment was driven by signs of economic recovery in key Asian economies, along with positive cues from global markets. However, despite the strong performance in Asia, the Indian markets continued to struggle due to domestic factors and selling by foreign institutional investors (FIIs).
As the Nifty and Sensex remain under bearish influence, market participants will keep a close eye on global cues and sectoral performances to identify potential recovery signals. For now, the bulls appear to have taken a back seat as uncertainty grips the Indian markets.