The markets ended lower on Monday, with the Sensex falling 383 points and the Nifty slipping below the 23,800 mark as investors remained cautious amid rising crude oil prices, heightened US-Iran tensions and concerns over US interest rates.
The BSE Sensex declined 382.63 points, or 0.50%, to close at 76,132.81, while the NSE Nifty50 fell 123.65 points, or 0.52%, to end at 23,779.15. The decline extended the market’s losing run, with global uncertainty continuing to overshadow positive domestic economic signals.
Selling was broad-based, although select stocks managed to buck the trend. Apollo Hospitals, Bharti Airtel, Larsen & Toubro, Coal India and Max Healthcare were among the notable gainers. Healthcare stocks were particularly resilient, helping the pharma and healthcare segments outperform the broader market.
At the other end, Infosys emerged as the biggest loser among the Nifty 50 stocks. Tech Mahindra, TCS and other IT counters also faced heavy selling. Infosys fell around 3.8%, while Tech Mahindra and TCS declined as investors worried that higher US borrowing costs could weigh on technology spending.
The IT sector was among the biggest drags on the market, falling more than 2%. The weakness came after stronger-than-expected US jobs data strengthened expectations that the US Federal Reserve may keep interest rates elevated for longer. Higher interest rates could reduce corporate technology spending in the US, an important market for Indian IT companies.
Rising crude oil prices added to the pressure. Brent crude climbed close to $97 a barrel as escalating tensions between the US and Iran raised concerns over potential disruptions to oil supplies and shipping through the Strait of Hormuz.
For India, the oil price rise is particularly important because the country relies heavily on imports to meet its energy requirements. Expensive crude can increase the import bill, put pressure on inflation and raise costs for businesses, particularly airlines, paints, tyres and other fuel-sensitive industries.
The geopolitical situation also encouraged investors to adopt a defensive approach. The possibility of a prolonged US-Iran confrontation and uncertainty around energy supplies have increased volatility across global financial markets.
Foreign institutional investors remained another source of pressure. FIIs continued to withdraw money from Indian equities, limiting the market’s ability to recover despite domestic institutional buying. Foreign investors sold about Rs 3,112 crore worth of Indian equities, while domestic institutional investors provided some support.
Sectoral performance reflected the cautious mood. IT and media stocks were among the weakest performers, while insurance and several financial counters also came under pressure. Healthcare remained relatively stronger, while select auto, telecom and infrastructure stocks attracted buying interest.
Among individual stocks, Apollo Hospitals stood out on the gaining side, while Bharti Airtel, L&T and Coal India also showed resilience. The strength in these counters provided some support to the broader market but was not enough to offset losses in heavyweight IT and financial stocks.
Infosys led the list of major losers, followed by Tech Mahindra and other technology stocks. PVR INOX and Zee Entertainment also witnessed sharp declines amid company-specific developments, adding to the weakness in individual stocks.
The broader market was also subdued, with the Nifty Midcap index declining around 0.5%. Market breadth remained weak as selling pressure spread across several sectors and stocks.
Analysts are now watching the 23,800 level closely. A sustained move below this mark could keep the Nifty under pressure, while a recovery above 23,900-24,000 may be needed to signal a meaningful improvement in sentiment.
Monday’s session therefore offered little comfort to investors. While stocks such as Apollo Hospitals and Bharti Airtel demonstrated pockets of strength, sharp losses in Infosys, Tech Mahindra and other IT counters showed how quickly global concerns can influence Indian equities.