Benchmark stock market indices slipped into the red by the end of Monday’s session, giving up early gains after hitting fresh all-time highs in morning trade.
The S&P BSE Sensex closed 64.77 points lower at 85,641.90, while the NSE Nifty50 ended 27.20 points down at 26,175.75. Broader market indices also weakened as volatility ticked up and investors booked profits following a record-setting rally last week.
Most sectors saw mild pressure, though select auto and cement stocks managed to hold firm.
Ultratech Cement, TMPV, Maruti, BEL and Eicher Motors emerged as the top gainers on the Nifty50. Meanwhile, Max Health, IndiGo, Bajaj Finance, Sun Pharmaceutical and Adani Enterprises dragged the index lower.
Vinod Nair, Head of Research at Geojit Financial Services, said the market cooled off as enthusiasm around a potential RBI rate cut faded.
“After reaching a new high, the market moved into a range-bound phase as expectations of an RBI rate cut in December faded following better-than-expected Q2 GDP growth and a sharp depreciation of the rupee,” he said.
Nair added that sentiment also turned cautious due to muted GST collections in November, which were impacted by lower tax rates. The auto index was a bright spot, however, supported by robust November sales.
“The auto index outperformed, backed by strong November numbers, aided by GST rationalisation, benign inflation and solid wedding season demand,” he noted.
With macro signals mixed and valuations elevated, analysts expect markets to remain choppy in the near term, driven largely by incoming economic data, policy cues and global trends.
