NIFTY and SENSEX open in red, India VIX surges, indicating rise in volatility

On Monday, Indian equity benchmark indices started the first trading day of the week on a negative note, with the NIFTY50 index and SENSEX opening lower. Similarly, in the broader markets, the Nifty Midcap 100 and Smallcap 100 index also plunged. Nifty FMCG was the only top gainer, while Nifty PSU Bank was the major loser in the early session.

At 9:25 AM: The SENSEX was trading lower by 0.35% below the 77,000 level, similarly, the NIFTY50 was down by 0.43% below the 23,400 level. Bank Nifty plummeted by 0.75% and was trading below the 51,300 level. India VIX has surged by 5.24% and is trading near the mark of 14, indicating an increase in market volatility.

Most Asia-Pacific markets fell on Monday as investors anticipate inflation data from various Asian countries this week. It will offer further insights into the global interest rate outlook. Inflation reports from Japan and Australia are set to be released this week.

Broader indices - Looking at the broader indices, the NIFTY Midcap 100 index was trading lower by 0.94% below the 55,000 level while the Nifty Smallcap 100 plunged by 1.14% trading below the 18,100 level. Market breadth is negative with 654 stocks advancing while 1,429 stocks declining.

Sectoral Performance - Within the sectoral landscape, Nifty FMCG (+0.17%) is the only major sector which is trading positively while Nifty Realty (-1.18%), Nifty Metal (-1.17%) and Nifty PSU Bank (-1.11%) were the major sectors that were trading negatively.

Top Gainers and Losers - Within the NIFTY50 space, Sun Pharma (+1.16%), Shriram Finance (+0.92%) and Wipro (+0.5%) are among the top gainers. On the other hand, IndusInd Bank (-2.38%), Cipla (-2.03%) and Tata Steel (-1.69%) were among the major losers.

U.S. Markets - The S&P 500 and Nasdaq closed slightly lower on Friday, primarily due to a second consecutive day of declines in Nvidia shares, which weighed heavily on the technology sector.

Technology emerged as the weakest performer among the 11 major S&P 500 sectors, dropping 0.84%, while communication services led the gains.

The US 10-year and 2-year Treasury yields remained steady in early Monday trading.

Commodities - Oil prices declined in early Asian trading on Monday for the second consecutive session. They were pressured by a stronger dollar and renewed concerns about prolonged higher interest rates, which dampened investors' risk appetite.

Brent crude futures dropped 40 cents, or 0.5%, to $84.84 a barrel, following a 0.6% decline on Friday. U.S. West Texas Intermediate (WTI) crude futures fell 39 cents, or 0.5%, to $80.34 a barrel.

Stocks in F&O Ban - Stocks banned for trading in the F&O segment on June 24, 2024, are Balrampur Chini Mills, Chambal Fertilisers & Chemicals, Gujarat Narmada Valley Fertilizers & Chemicals, Hindustan Aeronautics, Hindustan Copper, Indus Towers and Piramal Enterprises.