Indian markets traded lower with substantial losses as the BSE Sensex declined 400 points to settle at 76,728.37, down 0.48%, while the NSE Nifty50 closed at 23,946.25, falling 110 points or 0.46%. The Nifty had earlier slipped below the crucial 24,000 level, marking a significant psychological milestone. Weak global cues and rising uncertainty surrounding the latest developments in the US-Iran conflict weighed on market sentiment throughout the session, with benchmark indices extending losses in afternoon trade. Market breadth remained weak with 1,663 shares rising and 2,622 shares falling on the BSE, while 232 shares remained unchanged. The NSE's India VIX, a gauge of market volatility, jumped 6.28% to 13.87, reflecting increased investor uncertainty. The broader markets mirrored the weak trend, with both the Nifty Midcap 100 and Nifty Smallcap 100 indices declining more than 0.3%, indicating widespread selling pressure across market segments.
Selling pressure was concentrated in rate-sensitive and heavyweight sectors, with IT, banking, and automobile stocks being significantly affected. The Nifty IT index emerged as the biggest sectoral loser, while banking and automobile shares also witnessed sustained selling during the session. Among the Nifty 50 constituents, Eicher Motors, Kotak Mahindra Bank and Tata Consumer Products were among the worst-performing stocks, highlighting the broad-based weakness across frontline counters. The latest developments in the region fuelled concerns over potential disruptions to global trade and energy supplies, leading traders to trim exposure to riskier assets. Sectoral performance remained mixed with the Nifty Auto, Nifty Cement, Nifty Media, Nifty Chemicals, Nifty Oil & Gas, and Nifty IT indices all falling more than 1%, while the Nifty Pharma index emerged as the top sectoral gainer, rising 1%, and the Nifty Metal index also posted a strong gain of 0.8%, providing some support to the broader market decline amid ongoing geopolitical tensions.
Global markets traded cautiously on Monday as tensions between Iran and the U.S. escalated once again following renewed attacks in the Middle East, which threaten to prolong the war. Asian markets traded mixed as the U.S. attacked Iranian military targets over the weekend in retaliation to Tehran carrying out strikes along the Strait of Hormuz. President Donald Trump then threatened to annihilate Iran, saying in a Truth Social post: United States aircraft just struck Iranian missile and drone storage locations, and coastal radar sites, for violating the Cease Fire Agreement, AGAIN! While the return to diplomacy eased immediate concerns, markets continued to monitor the durability of the ceasefire and progress towards a broader agreement. The latest exchange of attacks began on Thursday when Iran targeted a container ship, prompting US strikes the following day, with Iran reportedly launching missiles and drones at US military sites in Kuwait and Bahrain early Sunday. Tehran and Washington later agreed to halt recent hostilities in the Gulf and resume talks over their dispute regarding the Strait of Hormuz, a US official said on Sunday, though the renewed exchange of attacks revived concerns over global energy supplies.
Brent crude futures rose above $72 a barrel on Monday after recently falling to four-month lows, reflecting renewed geopolitical tensions in the Middle East. MCX Gold futures for 5 August 2026 settlement declined 0.46% to ₹143,500. The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.05% to 101.07. The yield on India's 10-year benchmark federal paper was down 0.22% to 6.759 compared with the previous close of 6.774. The partially convertible rupee was hovering at 94.4325 compared with its close of 94.4500 during the previous trading session, edging higher against the dollar.
India's forex reserves increased by $963 million to $672.587 billion during the week ended June 19, according to the RBI. Foreign currency assets decreased by $3.072 billion to $541.217 billion, while the value of gold reserves increased by $4.110 billion to $107.930 billion during the week. The Special Drawing Rights (SDRs) were down $52 million to $18.647 billion, and India's reserve position with the IMF slipped $22 million to $4.793 billion. Goldman Sachs has upgraded India's macroeconomic outlook for 2026, raising its real GDP growth forecast to 6.5% from its earlier forecast of 6.1% following the recent US-Iran peace deal. US consumer sentiment rebounded from record lows in June, with the University of Michigan's Consumer Sentiment Index rising to a final reading of 49.5 in June from 44.8 in May, slightly above the preliminary estimate of 48.9. Market experts have recommended eight buy-or-sell stocks for intraday trading, including Aurobindo Pharma (₹1,555 target ₹1,660), Radico Khaitan (₹3,830 target ₹4,090), Indus Towers (₹393 target ₹415), Canara Bank (₹129 target ₹140), UPL (₹590 target ₹620), Mahindra & Mahindra (₹3,182 target ₹3,330), Ashok Leyland (₹160.50 target ₹169), and Astra Microwave Products (₹1,721 target ₹1,850).
