Indian stocks traded with high volatility on Monday, opening slightly lower as investors took profits after a strong rally in October. Weakness in private banks and FMCG shares pulled the markets down, though positive quarterly results and encouraging auto sales data helped limit the fall.
The mood in global markets also stayed cautious. A stronger U.S. dollar and the Federal Reserve’s cautious outlook on interest rate cuts made investors less willing to take risks.
On Friday, Indian markets had already ended lower for the second day in a row as traders booked profits following mixed corporate earnings. Financial stocks, especially HDFC Bank and ICICI Bank, faced pressure after the market regulator tightened some eligibility rules.
At close on Friday, the Sensex had fallen 465.75 points (0.55%) to 83,938.71, while the Nifty 50 lost 155.75 points (0.60%) to end at 25,722.10.
Analysts said the market could stay choppy in the short term as investors look for direction from global cues, crude oil prices, and upcoming earnings reports.