Indian equity benchmarks declined as investors continued to lock in profits from recent outperformers, particularly in the information technology sector.
The NSE Nifty 50 Index slipped 0.3% in Mumbai, marking its second consecutive day of losses. Meanwhile, gains in small- and mid-cap indices were trimmed, though real estate stocks stood out as top performers.
The broader market mirrored the weakness seen across most Asian indices, as investor sentiment was dampened by Moody’s downgrade of the U.S. credit rating. The MSCI Asia Pacific Index edged down 0.1%, heading for its third straight daily decline.
Among the Nifty 50 constituents, software giant Infosys had the largest negative impact on the index, falling 1.9%. Of the 50 stocks in the index, 19 advanced while 31 declined.
APL Apollo Tubes Ltd. and BSE Ltd. were among the NSE 200 constituents that reached record highs in today’s session. Additionally, one more stock climbed to a new 52-week high, while Vodafone Idea Ltd. touched a 52-week low.
Notably, among the stocks hitting fresh highs, BSE Ltd. has delivered the strongest average 3-month return historically when bought at a new 52-week high.
The NSE Nifty 50 Index declined by 1.1% marking its steepest single-day drop in a week, with 43 of its 50 constituents closing lower. Broader market indices also mirrored the weakness, as both mid-cap and small-cap gauges fell by over 1%.
Indian equities began the week on a cautious note following a strong 4% gain last week. Foreign institutional investors (FIIs) net sold ₹5.3 billion ($62 million) worth of domestic equities on Monday, while domestic institutional investors (DIIs) also trimmed positions, offloading ₹2.4 billion, according to provisional data. Local funds, which have been a stabilizing force for the market, appear to be booking profits in recent sessions.
HDFC Bank Ltd. was the biggest drag on the Nifty 50, slipping 1.26% and contributing the most to the index’s decline.