Benchmark equity indices Sensex and Nifty ended in the red on Monday as renewed geopolitical tensions between the US and Iran, coupled with rising crude oil prices, dampened investor sentiment. Market participants said profit booking in select heavyweight stocks and broad-based selling in IT, auto and oil & gas counters also weighed on the benchmark indices.
The 30-share BSE Sensex fell 372.10 points, or 0.48 per cent, to close at 76,728.37. During intraday trade, the index dropped as much as 478.72 points, or 0.62 per cent, to touch 76,621.75. On the BSE, declining stocks outnumbered gainers, with 2,629 shares ending lower, 1,712 advancing and 218 remaining unchanged. The broader NSE Nifty50 declined 109.75 points, or 0.46 per cent, to settle at 23,946.25.
"Geopolitical tensions intensified over the weekend after the US and Iran exchanged attacks around the Strait of Hormuz before agreeing to suspend hostilities and resume diplomatic engagement. While the truce helped limit market losses, concerns over its sustainability have kept volatility elevated and headline risk firmly in focus," said Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech platform.
Among Sensex constituents, Kotak Mahindra Bank emerged as the biggest loser, falling 3.24 per cent after announcing that Managing Director and CEO Ashok Vaswani will step down at the end of his three-year term and will not seek reappointment after December 31, 2026. Other major laggards included Mahindra & Mahindra, Maruti Suzuki, InterGlobe Aviation, UltraTech Cement and Larsen & Toubro.
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On the positive side, Eternal, Trent, Bharat Electronics and NTPC were among the top gainers. The BSE SmallCap Select index slipped 0.65 per cent, while the MidCap Select index declined 0.60 per cent.
Sector-wise, the Auto index was the worst performer, plunging 2.11 per cent, followed by Focused IT, which dropped 1.53 per cent. Oil & Gas fell 1.40 per cent, Services declined 1.21 per cent, IT lost 1.04 per cent, and Consumer Discretionary eased 0.91 per cent. In contrast, Healthcare, Utilities, Capital Goods, MidSmall Private Banks, Quality Tilt and Power indices ended in positive territory.
Meanwhile, Brent crude, the international oil benchmark, rose 1.51 per cent to USD 73.09 a barrel. "Investor sentiment remained guarded as markets weighed optimism surrounding the ongoing US-Iran diplomatic dialogue against renewed geopolitical uncertainties following fresh military developments in the Middle East over the weekend.
"Stock-specific factors also influenced trading activity, with the IT sector coming under pressure due to acquisition-related concerns, while leadership changes at select banking companies further dragged the benchmark indices lower," said Ajit Mishra, SVP, Research, Religare Broking Ltd.
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