surrendered early gains to close marginally lower on Monday despite touching fresh all-time highs, as investors booked profits at elevated levels amid weak global cues and a rupee hitting a record low against the dollar.
The fell 27.20 points (0.10 per cent) to close at 26,175.75 after touching an intraday high of 26,325.80 in early trade. The declined 64.77 points (0.08 per cent) to settle at 85,641.90, down from its opening level of 86,065.92. Both indices corrected nearly 200 points from their day’s peaks.
“After a gap-up open, the market consistently faced selling pressure at higher levels. On daily charts, it has formed a bearish candle, indicating further weakness. However, the short-term market sentiment remains positive,” said Shrikant Chouhan, Head Equity Research at Kotak Securities.
The morning optimism was driven by Friday’s robust GDP data showing India’s economy expanded 8.2 per cent in the second quarter, marking the fastest growth in six quarters. However, the strong growth print dampened expectations of a near-term RBI rate cut, pushing bond yields higher and weighing on sentiment ahead of the central bank’s policy meeting this week.
Among sectoral indices, Nifty Auto, Metal, IT, and PSU Bank displayed strength, while Realty, Healthcare, and Pharma indices closed in the red. The broader market showed mixed trends with Nifty Midcap 100 ending flat and Nifty Smallcap 100 gaining 0.25 per cent.
emerged as the top gainer on Nifty 50, surging 3.56 per cent to ₹12,013 from its previous close of ₹11,600. rose 1.88 per cent to ₹363.50, while advanced 1.42 per cent to ₹16,125. gained 1.28 per cent to ₹417, and climbed 1.16 per cent to ₹7,135.
On the losing side, tumbled 2.67 per cent to ₹1,131.80 from ₹1,162.80. fell 2.19 per cent to ₹5,772.50, while declined 1.71 per cent to ₹1,019.80. dropped 1.23 per cent to ₹1,809, and slipped 0.89 per cent to ₹2,259.90.
Market breadth remained weak with 1,836 stocks advancing against 2,405 declining on the BSE, where 4,455 stocks were traded. Notably, 151 stocks hit 52-week highs while 197 touched 52-week lows.
“Sentiment drew support from strong GDP data reinforcing India’s economic momentum, positive global cues—particularly from US markets—and steady DII buying which offset FII outflows,” said Ajit Mishra, SVP Research at Religare Broking.
The extended its losing streak for the fourth consecutive session, hitting a fresh all-time low of 89.75 against the dollar before closing at 89.56, down 10 paise. “The primary pressure came from sharply higher commodity prices — Gold at ₹1,31,000 and Silver above ₹57, both at historic highs significantly increasing India’s import bill and weighing on the rupee,” said Jateen Trivedi, VP Research Analyst at LKP Securities.
Adding to the pressure, GST collections softened to ₹1.7 lakh crore in November, down from ₹1.96 lakh crore last month. “Expectations of a near-term RBI rate cut faded following the robust growth print, pushing bond yields higher and reducing hopes of monetary easing,” noted Gaurav Garg, Research Analyst at Lemonn Markets Desk.
Looking ahead, analysts expect the consolidation to continue in the near term. “The index is expected to find support near the 26,100 zone, with major support around the 20-DEMA, currently near 25,950. On the upside, a decisive break above 26,300 could open the gates for a move towards the 26,500+ zone,” said Ajit Mishra. Market participants will closely watch the RBI policy decision and key US economic data releases this week for further direction.