FX.co ★ India Stocks Muted in Early Deals

On Monday morning, the BSE Sensex experienced minimal movement, stabilizing around the 82,348 mark after pulling back in the previous session. Gains in financial services and healthcare sectors countered the losses observed in the technology sector. Market participants showed apprehension following Moody's decision to downgrade the US government's credit rating last Friday, primarily due to concerns about the budget deficit. Additionally, mixed economic data from China, India's principal trading partner, contributed to the cautious atmosphere. While China's industrial output surpassed forecasts, retail sales did not meet expectations. Investors are also cautiously awaiting China's interest rate announcement on Tuesday, with forecasts suggesting a potential 10 bps reduction in both the one-year and five-year loan prime rates by the central bank. Meanwhile, Sun Pharmaceutical saw a 1.1% increase, Tata Motors edged up 0.8%, and Bajaj Finance also climbed 0.8%. In contrast, shares of Infosys and TCS dipped by 1.1% and 0.7%, respectively.