Sensex ends 420 pts off day’s high, Nifty settles at 24,219; Adani Ports, Bajaj Finance, Bajaj Finserv lead fall

The Indian equity market ended lower in choppy trade on Monday, as caution prevailed ahead of fresh U.S. sanctions on Iran expected later today. Rising bond yields further dampened risk appetite, while weakness in PSU bank stocks, amid mark-to-market losses triggered by the rise in sovereign bond yields, also weighed on sentiment.

The BSE Sensex ended 171.72 points, or 0.22%, lower at 77,369.11, while the Nifty 50 declined 32.95 points, or 0.14%, to 24,219.05.

Early today, the 30-share Sensex opened 88.73 points higher at 77,629.56 but fell as much as 340.57 points, or 0.44%, from the previous close to hit an intraday low of 77,201.66. From the day's high of 77,789.40, the index fell 587.74 points to the day's low.

Similarly, the Nifty 50 opened 33.05 points higher at 24,285.05 and touched a high of 24,313 before falling to an intraday low of 24,144.30, down 107.70 points from the previous close.

The broader market was mixed, with the Nifty Midcap 100 rising 0.13%, while the Nifty Smallcap 100 declined 0.26%. India VIX rose 3.81% to 11.62, signalling a rise in market volatility.

20 Sensex stocks end in red

On the Sensex pack, 20 of the 30 stocks ended in negative territory, with Adani Ports, Bajaj Finance and Bajaj Finserv emerging as the biggest laggards. Tata Steel was the top gainer, rising 1.86%, followed by HCL Technologies and Infosys, which gained 1.30% and 0.89%, respectively.

Among sectoral indices, Nifty Metal was the top gainer, rising 1.59%, followed by Realty (0.60%), IT (0.21%) and Oil & Gas (0.13%). On the losing side, Nifty PSU Bank fell 0.93%, Media declined 0.58%, while Financial Services and Private Bank indices slipped 0.32% each.

Sugar stocks rally

Shares of sugar companies witnessed strong buying after Friday's sell-off, with several stocks hitting fresh 52-week highs as tighter government curbs on stockholding revived investor sentiment amid soaring domestic sugar prices. Shares of Bajaj Hindusthan Sugar, Dwarikesh Sugar Industries, Uttam Sugar Mills, Ugar Sugar Works, Dhampur Sugar Mills, Avadh Sugar & Energy, Magadh Sugar & Energy, Dalmia Bharat Sugar and Industries, and Mawana Sugars hit their respective 52-week highs.

"Energy prices eased from recent highs ahead of the sanctions announcement, offering some relief, but remained elevated. Domestic crude futures fell nearly 2% to around ₹8,170, while WTI crude eased towards $85 a barrel," said Ponmudi R, CEO of Enrich Money. "The near-term direction of oil remains closely tied to developments in the Middle East, leaving energy markets vulnerable to headline-driven volatility."

The prolonged conflict and resulting surge in energy prices have also reinforced inflation concerns and kept the Indian rupee under pressure. The currency traded within a narrow range, caught between persistent dollar demand and central-bank intervention. Meanwhile, gold climbed to a three-month high, with investor attention now turning to the Federal Reserve chair's Jackson Hole address later this week for further signals on the path of US interest rates.

Vinod Nair, Head of Research at Geojit Investments Limited, said, "Caution dominated market sentiment as investors are awaiting fresh sanctions from the US on Iran later today. Brent crude eased on profit-taking but remained above the $90/bbl mark, supported by concerns over tighter Iranian oil supplies and ongoing tensions around the Strait of Hormuz. Against this backdrop, coupled with the RBI's recent hawkish stance, domestic bond yields moved higher, dampening risk appetite."

"Tracking weak Asian markets, Indian equities drifted lower through the day, with large caps underperforming broader markets. Sectorally, metals outperformed on firm commodity prices, while banking stocks came under pressure, with PSU banks trailing their private-sector counterparts amid mark-to-market losses driven by the rise in sovereign bond yields," he added.

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