Indian shares were little changed on Monday, with gains in consumer stocks offset by losses in metals, while global prices of copper and crude oil declined.
The NSE Nifty 50 index (.NSEI) edged up 0.05% to 15,302.8 by 0516 GMT, while the S&P BSE Sensex (.BSESN) was up 0.1% at 51,423.83. Both indexes fell over 5% last week in their biggest weekly drop in two years.
“Volatility will continue. Technicals should stabilize. Falling crude prices is a good sign, but they should sustain. We can’t expect markets to react in a hurry,” said Deven Choksey, founder, KR Choksey Shares.
Oil prices dropped to $113.04 per barrel while copper prices also fell, on fears that a recession would dent demand for metals.
Asian shares were unable to sustain their rare rally, as Wall Street futures shed early gains amid worries the U.S. Federal Reserve would this week underline its commitment to fighting inflation with whatever rate hikes were needed. The Nifty metal index (.NIFTYMET) fell as much as 4.4% to its lowest in over a year.
Vedanta Ltd (VDAN.NS) tumbled nearly 10% to its lowest since April 2021. The miner has also invited expression of interests for its closed copper smelter plant in southern India. Shares of oil and gas producers fell, with Gas Authority of India (GAIL.NS) shedding 5.3% and ONGC (ONGC.NS) down 5.4%.
Consumer stocks gained, with the Nifty FMCG index (.NIFTYFMCG) up 1.4%. Hindustan Unilever (HLL.NS), up 3.4%, was the top gainer on the Nifty 50.