closed lower on Monday, with the Nifty 50 slipping below the psychologically significant 26,000 level as profit booking at higher levels and year-end caution overshadowed early gains in thin holiday trade. The benchmark fell 100.20 points, or 0.38 per cent, to settle at 25,942.10, while the declined 345.91 points, or 0.41 per cent, to close at 84,695.54.
Market breadth remained decisively negative, with 2,831 stocks declining against 1,495 advances on the , while 186 remained unchanged. The session saw 115 stocks hitting 52-week highs, but 195 touched 52-week lows, reflecting underlying weakness. The broader markets underperformed, with the Nifty Midcap 100 falling 0.52 per cent to 60,001.30 and the Nifty Smallcap 100 dropping 0.72 per cent to 17,567.70.
Metal stocks emerged as the top gainers despite the overall market weakness. led the Nifty 50 gainers, surging 1.88 per cent to close at ₹172.30, followed by , which gained 1.59 per cent to ₹1,194.40. advanced 1.04 per cent to ₹2,775.00, while rose 1.00 per cent to ₹2,846.00. rounded out the top five gainers with a 0.58 per cent increase to ₹1,280.00.
“Sentiment has received a sector-specific boost in the steel space following the government’s imposition of anti-dumping duties on select Chinese steel imports, enhancing pricing power and margin visibility for domestic producers,” said Ponmudi R, CEO of Enrich Money.
On the losing side, led the decliners, falling 2.27 per cent to ₹1,453.40. dropped 1.82 per cent to ₹1,630.60, while declined 1.75 per cent to ₹260.80. slipped 1.43 per cent to ₹4,224.20, and fell 1.30 per cent to ₹2,201.00.
Sectoral performance was largely negative, with Nifty IT declining 0.8 per cent as the top loser, extending profit-taking for a second consecutive day. Nifty Realty fell 0.7 per cent, while Nifty Bank closed marginally lower by 0.13 per cent at 58,932.35. However, Nifty Media bucked the trend, gaining 0.9 per cent.
“The market appears short on catalysts for further upside, with investors largely in holiday mode, signalling a potential consolidation phase in the near term,” said Vinod Nair, Head of Research at Geojit Investments Limited. “In an environment of global trade anxiety and a weakening rupee, investors are likely to favour large-cap stocks for their relative safety and stronger earnings visibility.”
The Indian rupee continued its downward spiral, marking its fifth consecutive session of losses, weakening marginally to 89.95 against the US dollar. “The persistent decline was further intensified by typical month-end demand from importers and corporates scrambling for the greenback in thin liquidity market,” noted Dilip Parmar, Research Analyst at HDFC Securities, adding that the currency is expected to find support around 88.95 with recovery facing a hurdle at 90.30.
Volatility indicators showed a pickup in uncertainty, with India VIX rising 6.23 per cent to 9.71, suggesting increased caution among market participants ahead of the monthly F&O expiry.
“Technically, after a muted open, the market slipped below the 26,000/85,000 mark, and post-breakdown, intraday selling pressure increased,” said Shrikant Chouhan, Head of Equity Research at Kotak Securities. “We believe that 26,000/85,000 or the 20-day SMA will be the key resistance zone for day traders.”
Looking ahead, analysts expect markets to remain range-bound in the near term, with attention shifting toward upcoming Q3 earnings and clarity on the US-India trade agreement. “Overall, markets are expected to remain in a consolidation phase in the absence of fresh triggers,” said Gaurav Garg, Research Analyst at Lemonn Markets Desk, noting that the expected US-India trade deal before year-end now looks bleak.