Indian equity markets opened the new week on a negative note on Monday, February 16, reflecting a mix of regulatory concerns, sector-specific weakness and subdued global cues. Both benchmark indices started the session under pressure, with the Sensex slipping by over 100 points in early trade and the Nifty 50 trading below the 25,450 mark.
The opening trend pointed to hesitation rather than panic, as investors preferred to assess fresh domestic developments before taking decisive positions.
A key drag on sentiment came from tighter regulatory measures announced by the Reserve Bank of India related to lending norms for capital market activity. The move weighed heavily on shares of stock exchanges and brokerage firms, which saw sharp early losses as concerns grew over higher funding costs and reduced trading leverage. This regulatory overhang spilled into broader market sentiment, limiting risk appetite at the open.
"The markets on Monday opened lower on a cautious not, with sentiment primarily weighed down by continued weakness in the IT sector. Institutional flows appear to be rotating away from high valuation tech names toward sectors offering relatively stronger earnings clarity," said R Ponmudi, a senior stock analyst and CEO at broking and wealth tech firm Enrich Money.
The information technology sector continued to act as another source of weakness, extending the softness seen late last week. Persistent uncertainty around global demand, cautious client spending and muted cues from overseas technology stocks kept IT majors under pressure, preventing any meaningful upside traction for the indices in early trade. Banking and financial stocks were mixed, with selective buying in large lenders offset by caution in market-linked financial services companies.
Global cues offered little support to domestic markets at the opening bell. Asian equities were largely mixed, with investors remaining wary amid lingering concerns over global growth momentum and monetary policy expectations in major economies. These external uncertainties reinforced a wait-and-watch approach among Indian investors, particularly after the recent volatility.
From a broader market perspective, the opening trend suggested consolidation rather than a directional breakout. Early attempts at recovery indicated that while downside was being tested, selling pressure lacked intensity. Technical positioning showed key support levels still intact, encouraging traders to selectively accumulate rather than unwind positions aggressively. At the same time, resistance at higher levels capped any swift rebound, keeping indices range-bound.
Overall, the Indian market’s opening on Monday underscored a cautious start to the week, shaped by regulatory tightening, sectoral headwinds and muted global cues. While the initial tone was weak, the absence of sharp selling hinted at underlying support, suggesting that markets may continue to consolidate as participants await clearer domestic triggers and stronger global direction later in the session.
