Indian stock markets closed lower on Monday with benchmark indices BSE Sensex closing 307.68 points, or 0.40%, lower at 76,956.83 and Nifty 50 falling 95.25 points, or 0.39%, to 24,080.40. According to Moneycontrol, GIFT Nifty was trading marginally lower at around 24,206.50 in early trade, indicating a flat to negative opening for the domestic equity markets. The market decline was driven by rising crude oil prices, elevated global bond yields and fears of a potential US interest-rate hike. Brent crude jumped 3.63% to $91.30 per barrel, while investor sentiment was also affected after Federal Reserve Chair Kevin Warsh's hawkish comments increased expectations of a potential September rate hike. However, stock-specific buying in the broader market helped the indices recover from intraday lows, supported by expectations of healthy Q1FY27 GDP growth, festive-led demand and better GST collections. The Nifty held the crucial 24,000 level despite the broader weakness, with Sun Pharma, Nestle India, Axis Bank and Max Healthcare Institute among the top Nifty 50 gainers, while Adani Enterprises, Adani Ports, ITC Ltd, Bharti Airtel and Tata Motors PV led the losers. The Nifty 50 tumbled as much as 0.75% to touch the session's low of 23,993.60, while Sensex declined as much as 0.66% to hit an intraday low of 76,751.32.
Adani Enterprises emerged as the biggest loser, declining 9.76%, while Adani Ports & SEZ fell 6.70% amid heightened volatility ahead of the MSCI index reshuffle. According to Reuters, Adani Enterprises and Adani Ports are likely to receive inflows of about $202 million and $77 million, respectively, with Adani Energy Solutions also expected to see inflows of around $310 million. ITC Ltd declined 3.95%, Bharti Airtel fell 3.75%, and Tata Motors PV dropped 3.30%. The decline in Adani stocks was particularly significant given the quarterly MSCI index reshuffle implemented at the close, which was expected to result in large passive-fund flows through the CAS session. Laurus Labs, Lenskart, Adani Energy Solutions and Groww would be added effective September 1, while Balkrishna Industries, SBI Cards and Astral would be removed. Reliance Industries would see a lower weight, while Adani Enterprises would gain weight. Escalating tensions between the US and Iran kept investors cautious, while foreign investment outflows also impacted sentiment, with FIIs selling stocks worth ₹8,000 crore on August 31, while DIIs purchased shares worth ₹4,588 crore on a net basis.
Media and metal stocks led the sectoral losses, falling more than 2% each, while FMCG declined 1.69% as sectors faced pressure from the prevailing bearish trend. According to Moneycontrol, National Aluminium Company (NALCO) shares fell around 4%, as metal stocks led losses on the market due to profit booking and falling metal prices. Other midcap losers included KPIT Tech, BSE, Radico Khaitan, Tata Elxsi, Bharat Dynamics, 360 One WAM, HUDCO and Hindustan Petroleum Corporation (HPCL), each of which fell over 2%. Persistent Systems declined 4.77%, GMR Airports fell 4.76%, KPIT Technologies dropped 4%, BSE declined 3.61%, and National Aluminium Company fell 3.41%. However, NSE's NIFTY Midcap 100 ended 0.24% or 155.25 points higher at 64,224.75, supported by Aurobindo Pharma, which closed 4.36% higher after its wholly owned subsidiary launched the generic equivalent of Advair Diskus in the US market. Lenskart Solutions gained 4.22%, FSN E-Commerce Ventures rose 4.14%, One 97 Communications advanced 4.01%, and Polycab India increased 3.93%.
HDFC Bank remained in focus after MD and CEO Sashidhar Jagdishan decided not to seek reappointment and will retire on October 26, 2026. According to The Hindu BusinessLine, Vinod Nair, Head of Research at Geojit Investments Limited, said higher crude prices and global bond yields had renewed concerns about energy-led inflation and a higher interest-rate environment. However, the banking index saw a major adjustment after the closing auction session (CAS) and ended around 600 points higher compared with its 3:15 pm level. Axis Bank emerged as a top gainer, rising 2.77%, while Max Healthcare Institute gained 2.76% and Grasim Industries advanced 2.46%. Banking and pharma stocks bucked the weakness, with private banks gaining nearly 1%, providing some support to the broader market. Ponmudi R, CEO of Enrich Money, said broad-based selling in early trade was triggered by renewed geopolitical tensions, a weaker global backdrop and rising rate-hike expectations, but strength in private banking and auto stocks helped cushion losses through the session.
NIFTY Smallcap 100 closed at 19,931.65, down by 148.35 points or 0.74%, with mixed performance across segments. Ather Energy emerged as the top gainer, surging 6.27% and hitting a 52-week high after launching its new EV scooter Konarc at ₹99,999 ex-showroom in Bengaluru. Ola Electric Mobility gained 4.93%, City Union Bank rose 3.27%, Computer Age Management Services advanced 2.62%, and Brigade Enterprises increased 2.51%. However, Kaynes Technology India declined 6.55%, Wockhardt fell 4.66%, Jyoti CNC Automation dropped 4.18%, Nuvama Wealth Management declined 3.26%, and Chambal Fertilizers & Chemicals fell 3.21%. According to Rupak De, Senior Technical Analyst at LKP Securities, Nifty continues to remain weak as it trades below the critical moving averages. He noted that the index found initial resistance around the recent low, but the RSI has formed a positive divergence on the hourly chart, indicating a possibility of a near-term pullback. The analyst expects the index may witness a minor pullback towards 24,180–24,200, with a sustained move above 24,200 potentially triggering a further rise of around 100 points. However, he believes that higher levels are likely to act as resistance, while support is placed at 23,990. A sustained break below this level could resume the correction in the market, with the overall market showing 2,204 declines against 1,340 advances.
