The benchmark indices ended lower after rising for two sessions, with the Nifty 50 closing at 24,219.05 points, down 32.95 points or 0.1%, while the BSE Sensex ended at 77,369.11 points, down 171.72 points or 0.2%. According to Informist Media, the indices started the day in positive territory but slipped into the red during afternoon trading. Market sentiment remained cautious as investors awaited fresh sanctions from the US on Iran later in the day. Vinod Nair, head of research at Geojit Investments, noted that "caution dominated market sentiment as investors are awaiting fresh sanctions from the US on Iran later today."
Metal companies emerged as the top performers, with Nifty Metal closing nearly 2% higher to be the best performing sectoral index. As reported by Informist Media, Hindalco Industries, JSW Steel, and Tata Steel were the best performers in the Nifty 50, up around 2%. On the other hand, financial services companies were the major contributors to the fall, with Bajaj Finserv, Bajaj Finance, Shriram Finance, State Bank of India, Jio Financial Services, and Axis Bank ending 1-2% lower. 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. The broader market indices ended mixed, with the Nifty Midcap indices ending 0.1% higher while the Nifty Smallcap indices ended 0.2-0.3% lower.
According to Informist Media, Vishal Mega Mart was the top gainer in both the Nifty 200 and Nifty 500 indices, up nearly 10%, climbing on optimism around the reappointment of Gunendar Kapur as chief executive officer and managing director for five years. Muthoot Finance was the second biggest gainer in the Nifty 200, up over 6%. On the downside, Coromandel International was the worst hit, down over 3%, followed by Bank of Baroda, down nearly 3%. BLS International Services was the underperformer among the Nifty 500 constituents, down nearly 11%, after media reports that the company is under scrutiny by the Spanish National Court over alleged links to a visa fraud network at the Spanish consulate in Algiers. The company later rejected any involvement in visa issuance irregularities in an exchange filing.
European markets opened mixed Monday as investors awaited details of US sanctions on Iran, with the pan-European STOXX 600 index closing unchanged at 654.21 points. According to Reuters, investors braced for details of potentially tougher U.S. secondary sanctions on countries with trade ties to Iran, expected to be announced by Treasury Secretary Scott Bessent. The Trump administration on Monday warned countries to reduce business ties with Iran or face secondary sanctions, but the U.S. Treasury Department did not immediately impose penalties, easing concerns about abrupt disruption to global trade and energy supplies. Pakistan's army chief is in Tehran to bring Iran back to the negotiating table, adding another dimension to the geopolitical tensions. Iran warned it would respond harshly to expanded US sanctions, including measures targeting countries that cooperate with Washington, saying further escalation would have consequences. China also criticised the planned sanctions, warning they could worsen regional tensions and disrupt global economic and financial stability. Iran's currency hit a record low of 2.02 million to the U.S. dollar as Washington prepared new secondary sanctions, intensifying pressure on an economy already battered by a U.S. naval blockade and six months of war.
Ratnamani Metals & Tubes rose 18% intraday to hit its highest level in two months at ₹2,777 after the company reported that its subsidiary received export orders worth $286 million to supply spools and hangers. Urban Co. rose over 8% to hit its highest level in over nine months at ₹172.33 after Emkay Global Financial Services initiated coverage with a "buy" recommendation and target price of ₹190. Among sectors, energy-intensive travel and leisure stocks led gains, rising 1.7% as Brent crude declined 1.9%, while the threat of sanctions follows fears of prolonged inflation that gripped global markets last week as U.S. Treasury yields hit a multi-decade high. Gold prices surged on Monday to reach their highest level in over three months, with a potent combination of technical buying, a softer U.S. dollar, and recent policy announcements from the U.S. Treasury pushing precious metals higher across the board. Market analysts expect the Nifty 50 to remain volatile Tuesday with investors taking a cautious stance after the US threatened Iran with fresh economic sanctions.
