closed lower on Monday as elevated crude oil prices, persistent foreign fund outflows and rising bond yields weighed on sentiment, offsetting the rupee’s sharp appreciation against the US dollar.
The fell 157.10 points, or 0.70 per cent, to close at 22,363.35, while the declined 547.65 points, or 0.76 per cent, to 71,924.68. The Bank Nifty shed 338.65 points, or 0.61 per cent, to settle at 54,918.
The Nifty opened 70 points higher and touched an intraday high of 22,651.10 before reversing course as selling pressure emerged.
The index fell to an intraday low of 22,304.45 before recovering marginally. Nandish Shah, Deputy Vice-President at HDFC Securities, said profit booking set in almost immediately after the opening and persisted through the session. NSE cash-market turnover declined 4 per cent from the previous session.
, or 0.96 per cent, to close at 95.77 against the dollar, recording its strongest single-session gain among Asian peers, according to the data cited.
The move followed Reserve Bank of India measures to ease dollar demand from state-run oil marketing companies and tighten norms governing certain corporate foreign exchange derivative positions.
However, the currency’s recovery did little to improve equity sentiment as crude oil remained elevated. Brent crude traded in the $102–105 a barrel range, while West Texas Intermediate crude remained above $92.
Ajit Mishra, Senior Vice-President of Research at Religare Broking, said elevated Brent prices continued to limit relief on the inflation front. Higher oil prices can increase India’s import bill and add to inflationary and current account pressures.
Foreign institutional investor outflows, which have crossed ₹3 lakh crore so far in 2026, continued to weigh on domestic equities. The 10-year government bond yield rose for a fourth consecutive session, adding to investor caution.
Geopolitical tensions and weak Asian market cues further constrained sentiment, while investors also turned their attention to the domestic corporate earnings season and upcoming inflation data.
The sell-off in the benchmark indices contrasted with gains in parts of the broader market. The Nifty Smallcap 100 rose 1.42 per cent, while the Nifty Midcap 100 edged up 0.08 per cent. Market breadth remained marginally positive, with the advance-decline ratio at 1.06 for a second consecutive session.
Sectorally, Nifty Media gained 4.60 per cent, leading advances, followed by Chemicals, Auto, Realty and Pharma. FMCG declined more than 1.70 per cent, making it the worst-performing sector, while PSU Banks, IT and Metals also ended lower.
Among Nifty constituents, Dr Reddy’s Laboratories, Bajaj Auto and Tata Motors Passenger Vehicles were among the leading gainers, while Apollo Hospitals, ITC and Tech Mahindra were among the biggest losers.
Domestic gold prices fell by around ₹1,500 to ₹1,49,950 per 10 grams, declining more than 1 per cent as the rupee’s appreciation added pressure to domestic prices of the dollar-denominated commodity. COMEX gold fell around 0.4 per cent.
Jateen Trivedi, Vice-President and Research Analyst for Commodities and Currency at LKP Securities, said attention would shift to US CPI data due this week, which could influence inflation expectations and the Federal Reserve’s interest-rate outlook.
Technically, the Nifty faces immediate support in the 22,180–22,250 range, with resistance at 22,500–22,530, according to Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities.
A decisive break below support could extend the correction, while a sustained move above resistance would be needed to improve the near-term outlook. For the Sensex, the 71,300–71,500 zone remains an important support area.
The rupee’s rally notwithstanding, elevated crude prices, continued foreign selling and rising bond yields remain key risks for equities. A sustained recovery in the benchmarks will depend on easing macroeconomic pressures and stronger buying interest at higher levels.