India’s stock market benchmark started the week flat on recession fears and nervousness ahead of a 75-basis point hike in US key interest rates this week. Falls in financials and FMCG stocks weighed on the market, but gains in IT stocks limited the downside.

Both major indexes were down 0.6% in the first few minutes of trading. Year-to-date, the Sensex is down 353 points at 58,487.8, and the Nifty50 is down 17,429.7 points, down 101.2 points from its previous close. Both are down about 3% over the past three days.

A total of 25 stocks in the Nifty50 basket start in the red. UltraTech, Bharti Airtel, ITC, JSW Steel and ICICI Bank are the biggest laggards.

Kotak Mahindra Bank, Grasim, HDFC Bank, Tata Motors and SBI – which opened 0.4% lower – were also the hardest-hit blue chips.

On the other hand, Bajaj Finserv, ONGC, Infosys, Tata Consumer and Mahindra & Mahindra were among the top gainers.

Wipro, HDFC Life, Bharat Petroleum, Hindalco and UPL were the majors’ biggest gainers. ICICI Bank, Asian Paints, Kotak Mahindra Bank and Reliance were the biggest contributors to declines in the two major indexes.

ONGC shares rose after the government last week cut a windfall tax on domestically produced crude oil amid falling global interest rates.

India’s largest oil and gas producer wants the government to scrap taxes and use a dividend route to capitalise on lucrative gains from surging energy prices this year.

Overall market breadth favoured bulls, with the BSE gaining 1,620 counters after losing 1,408 in early trade.
Shares of other Asian markets were mostly in the red after Dalal Street fell to a two-month low following recession warnings from the International Monetary Fund and World Bank. Nervousness also persisted as investors awaited the Fed’s key rate decision this week.

MSCI’s broadest index of Asia-Pacific shares outside Japan was last down 0.5%. Hong Kong’s Hang Seng fell 0.8%, while China’s Shanghai Composite was flat. Japanese markets were closed for a holiday. S&P 500 futures edged down 0.2%, signalling a weak start on Wall Street.