Benchmark indices ended lower on Monday, snapping their recent winning momentum as investors booked profits amid concerns over a weak monsoon, subdued first-quarter earnings expectations and uncertainty over the sustainability of the US-Iran peace agreement.
The BSE fell 372.10 points, or 0.48%, to close at 76,728.37, while the NSE Nifty50 declined 109.75 points, or 0.46%, to settle at 23,946.25.
The benchmarks had entered the session after registering their longest weekly winning streak of 2026, but gains made over the past few weeks prompted investors to lock in profits.
Market sentiment remained cautious despite easing geopolitical tensions in West Asia and prices holding near multi-month lows.
According to market participants, much of the optimism surrounding lower oil prices, moderation in foreign investor selling and policy measures to support the rupee has already been factored into stock prices, leading to a pause in the recent rally.
The US and Iran agreed to halt attacks on each other and resume talks over the Strait of Hormuz dispute, offering some relief to global markets. However, investors chose to remain cautious amid uncertainty over the durability of the interim peace agreement.
Selling was broad-based across sectors.
Auto stocks were among the biggest laggards, with the Nifty Auto index falling 2.08%. Nifty MidSmall IT & Telecom dropped 2.20%, while the Nifty IT index lost 1.07%. Media, oil & gas, PSU Bank and private bank indices also ended lower.
Defensive sectors bucked the trend. Nifty Pharma gained 1.03%, while the Nifty Healthcare index rose 0.94% as investors sought safety in sectors with stable earnings visibility.
Among Sensex stocks, Kotak Mahindra Bank fell 3.24%, Mahindra & Mahindra declined 2.79%, Maruti Suzuki slipped 2.12% and IndiGo lost 2.05%. On the gaining side, Eternal rose 1.39%, while Trent and Bharat Electronics gained 1.34% each.
Broader markets also ended in the red, with the Nifty Smallcap 100 declining 0.62% and the Nifty Midcap 100 falling 0.37%.
Vinod Nair, Head of Research at Geojit Investments Limited, said profit booking continued near key psychological levels as investors remained cautious about the sustainability of the interim US-Iran peace agreement.
He said the market currently lacks a clear near-term direction, with expectations for the June-quarter earnings season remaining subdued due to supply constraints, persistent inflationary pressures and a weak outlook, factors that could weigh on corporate margins.
Nair added that defensive sectors such as pharma and healthcare outperformed because of their resilient demand profile and stronger earnings visibility.
He also noted that investors are awaiting the upcoming US non-farm payrolls data, which could influence the Federal Reserve’s policy path. A moderation in FII outflows and a normalisation of the recent AI-driven rally in global markets could provide fresh support to Indian equities going forward.
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