Opening Bell: Nifty below 17,000-mark, Sensex slips more than 500 points; IT, Consumer Durables worst hit

Following SGX Nifty, which dropped nearly 250 points around 9 am, the Indian market declined for the second day in a row. Headline indices Nifty50 and the Sensex saw a cut of more than one per cent in the opening trade on Monday. The broader Nifty50 slipped below the 17,000-mark and Sensex tanked by more than 500 points. The benchmarks opened at 16,924.45 and 56,429.45 respectively on Monday.  

In the broader market, Nifty midcap and small cap indices too declined by around half per cent as India VIX approached 21-mark. 

Meanwhile, all sectors turned red with IT, Consumer durable and banking related indices taking the maximum beatings.  

"The excessive volatility in the market is likely to continue for some time. The sharp sell-off in US markets on Friday is an indication of the nervousness and fear in the market caused by an increasingly hawkish Fed,  rising dollar index and the prolonging war in Ukraine," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

The positive side is that domestic cues are getting stronger, said the expert.   "GST collections in April at 1.68 lakh crores, rising auto sales, improving business sentiments and good corporate results reflect an economy bouncing back smartly. This indicates that the economy facing stocks will do well in FY 23," said Vijayakumar.

DIIs and retail investors will be encouraged by the economic data while the FIIs  are likely to press sales further since rates are likely to rise sharply in US and the dollar index is rising, he added. 

In the pre-open, the Sensex dropped more than 600 points as six stocks advanced and 24 declined on the 30-share index.   

"Nifty and BankNifty retreats on account of mild fresh shorts, Nifty’s trading band 16800-17400 remains intact. SGXNifty indicates a negative start," said Yes Securities in its morning report.  

In the week gone by, domestic market consolidated and traded in a limited range, it said.  

"Though it ended on a negative note on Friday, it also formed a bearish engulfing candlestick pattern on the daily chart. This was the second week in a row where the Nifty faced fierce resistance in the 17400-17500 zone and retraced from that level," it added.  

Meanwhile, in the Asian market, Japanese Nikkei 225 was trading lower by 0.9% in the early trade as no trading was seen in Chinese Shanghai Composite and Hang Seng Index at the Hong Kong Exchange.  

Earlier, the US Market closed with massive drubbings on Friday as Dow Jones slipped more than 900 points, Nasdaq over 500 points and S&P 500 declined more than 150 points.