Domestic equities declined on Monday, after posting their longest weekly winning streak of 2026, as concerns over a weak monsoon and the escalation of geopolitical tensions in West Asia dented sentiment.
The BSE Sensex on Monday ended the session at 76,728, down 372 points, or 0.5 per cent, while the Nifty ended the session at 23,946, a drop of 110 points or 0.5 per cent.
The decline comes after benchmark indices Sensex and Nifty posted a third consecutive weekly gain last week, their longest winning streak this year, as easing crude oil prices and policy measures to support the rupee and mobilise foreign currency deposits boosted investor sentiment.
A series of tit-for-tat strikes between Iran and the US began after Iran attacked a container ship on Thursday at the Strait of Hormuz, raised concerns about the US-Iran peace deal and movement of oil through the Strait of Hormuz, a critical chokepoint through which a fifth of oil flows. However, both sides agreed to stop attacking each other before peace talks resume this week.
“Profit booking persisted near key psychological levels as investors remained cautious about the sustainability of the interim US-Iran peace agreement. The market currently lacks a clear near-term direction, with expectations for the Q1FY27 earnings season remaining subdued amid supply constraints, persistent inflationary pressures, and a weak monsoon outlook, all of which are likely to weigh on margins,” said Vinod Nair, head of research, Geojit Investments.
Market breadth was weak with 2,728 stocks declining and 1,628 advancing. Foreign portfolio investors were net sellers of ₹1,350 crore, while domestic institutions were net buyers of ₹2,802 crore. Market breadth was weak, with 2,728 stocks declining and 1,628 advancing.
“Going ahead, 23,850-23,800 is expected to act as immediate support for Nifty. A decisive breach below 23,800 could trigger further downside, dragging the index towards 23,650. On the upside, the zone of 24,070-24,100 is likely to act as a key resistance, posing a significant hurdle for any sustained upward move,” said Sudeep Shah, head of technical and derivatives research at SBI Securities.
