Indian benchmark indices ended lower on Monday, with banking and financial stocks emerging as the biggest drag on the market as investors remained cautious amid continuing tensions between the United States and Iran.
The Sensex declined 443 points, or 0.57 per cent, to close at 77,708.52, while the Nifty50 fell 96 points, or 0.39 per cent, to settle at 24,238.50. The decline reflected a cautious mood among investors, with selling pressure concentrated in major private sector banks and financial companies.
Market participants remained focused on developments surrounding US-Iran tensions and their possible impact on global markets. Concerns over geopolitical instability continued to influence investor sentiment, prompting a degree of caution in domestic equities.
Banking and financial stocks led the decline on the benchmark indices. The Nifty Private Bank and Nifty Financial Services indices were the worst-performing sectoral indices during the session, as investors booked profits in several leading financial stocks.
Axis Bank and HDFC Bank were among the biggest losers on the Nifty50. Their decline weighed heavily on the benchmark indices because of the significant representation of large private sector banks in the broader market. Maruti Suzuki India was also among the top losers on the Nifty50.
The weakness in private banks came despite the broader market showing a more resilient trend. The Nifty Midcap 100 index gained 0.6 per cent, while the Nifty Smallcap 100 index rose 0.16 per cent. The performance suggested that buying interest remained visible in select mid-sized and smaller companies even as investors adopted a cautious approach towards large-cap stocks.
Also read: 15,870 MW pumped storage capacity under works
Sectoral performance remained mixed throughout the session. The Nifty Pharma index emerged among the strongest gainers, while the Nifty PSU Bank index also ended with notable gains. The positive performance of these sectors provided some support to the broader market and helped limit the overall decline.
However, the weakness in private banking and financial stocks was sufficient to pull the headline indices lower. Investors continued to assess the impact of global developments while also tracking the performance of key sectors and companies.
The market's movement reflected a cautious approach ahead of further clarity on geopolitical developments. Analysts said volatility could remain elevated if tensions between Washington and Tehran intensify or raise concerns about broader economic and financial implications.
The decline in the Sensex and Nifty50 also came after a period of mixed trading in the domestic market, with investors closely monitoring global cues and sector-specific trends. The performance of banking stocks remained a key factor in determining the direction of the benchmark indices.
At the close of trading, the market presented a mixed picture. While large-cap banking and financial stocks came under pressure, broader market indices and select sectors such as pharmaceuticals and public sector banks managed to post gains.
Investors are expected to continue tracking global geopolitical developments and their potential impact on market sentiment in the coming sessions. The performance of banks, financial stocks and other heavyweight companies is likely to remain crucial for the near-term direction of the Sensex and Nifty50.
Follow us
