Indian equity markets declined on Monday with the Nifty 50 index falling 124.35 points or 0.52% to 23,956.05, while the S&P BSE Sensex dropped 296.22 points or 0.38% to 76,661.05 at 14:30 IST. According to reports from Business Standard, the broader market also showed weakness with the BSE 150 MidCap Index declining 1.03% and the BSE 250 SmallCap Index shedding 0.34%. Market breadth remained weak with 1,533 shares rising against 2,733 shares falling on the BSE, while 221 shares remained unchanged.
The Nifty Auto index declined 1.95% to 28,280.45, marking a 2.68% decline over five consecutive trading sessions. As reported by Business Standard, major auto stocks faced significant pressure with Maruti Suzuki India falling 4.92%, Bosch dropping 4.35%, Samvardhana Motherson International declining 4.12%, and TVS Motor Company down 4.11%. Other notable declines included Ashok Leyland falling 3.84%, Bharat Forge dropping 2.37%, and Mahindra & Mahindra declining 1.64%. The sector's weakness reflects broader concerns about manufacturing conditions and demand outlook.
India's HSBC Manufacturing PMI eased to 52.8 in August 2026 from 53.5 in July, revised down from the preliminary estimate of 52.9, marking the weakest improvement in the sector's health in five years. According to Business Standard, output and new orders continued to expand, but both grew at their slowest pace since August 2021 amid softer demand and challenging market conditions. The report noted that manufacturing employment declined for the first time in two-and-a-half years, while input cost inflation eased to a six-month low.
In the commodities market, Brent crude for October 2026 settlement jumped $1.94 or 2.14% to $92.14 per barrel, while MCX Gold futures for 5 October 2026 settlement rose 0.12% to ₹1,54,649. As reported by Business Standard, the US Dollar Index (DXY) was up 0.07% to 99.49, and the United States 10-year bond yield rose 0.50% to 4.782. The rupee edged higher against the dollar, hovering at 95.0050 compared with its close of 95.2200 during the previous trading session.
The yield on India's 10-year benchmark federal paper rose 0.14% to 6.956 compared with the previous session close of 6.947, according to Business Standard. This increase in bond yields reflects market sentiment and broader economic conditions affecting fixed-income securities. The movement in bond markets typically influences overall market sentiment and can impact equity valuations, particularly in sectors sensitive to interest rate changes.
