Indian benchmark indices ended lower on Monday as investors booked profits amid renewed concerns over rising crude oil prices following fresh hostilities involving the US and Iran.
The Sensex fell 372 points, or 0.48 percent, to close at 76,728.37, while the Nifty 50 declined 110 points, or 0.46 percent, to settle at 23,946.25. Broader markets also remained under pressure, with the Nifty Midcap 100 slipping 0.37 percent and the Nifty Smallcap 100 losing 0.62 percent.
The sell-off wiped out more than ₹1 lakh-crore in investor wealth, with the total market capitalisation of BSE-listed companies slipping below ₹474 lakh-crore.
Investor sentiment turned cautious after Brent crude climbed above $72 a barrel following fresh military action in the Middle East. Iran reportedly launched another round of retaliatory strikes after recent US attacks, raising fears over energy supplies.
Although reports later suggested that Washington and Tehran could halt further strikes and resume technical negotiations, investors remained cautious about the sustainability of the fragile truce.
The rupee also weakened, ending 9 paise lower at ₹94.54 against the dollar.
Heavyweight stocks led the market decline, with Reliance Industries, Kotak Mahindra Bank, Mahindra & Mahindra, Larsen & Toubro and Maruti Suzuki emerging as the biggest contributors to the Sensex's losses.
Market analysts said profit booking intensified as investors turned cautious near key psychological levels, while uncertainty surrounding the US-Iran situation and muted expectations for the June quarter earnings season also weighed on sentiment.
Concerns over supply constraints, persistent inflationary pressures and the outlook for the monsoon are expected to keep corporate margins under pressure in the near term.
Gains were limited to a few defensive sectors.
• Nifty Pharma, Healthcare and Metal indices gained around 1 percent.
• Nifty Auto declined nearly 2 percent.
• Media, IT and Oil & Gas indices fell more than 1 percent each.
• Private Bank, PSU Bank, Realty, Consumer Durables and Financial Services indices also ended lower.
Top gainers
Max Healthcare Institute
Dr Reddy's Laboratories
Coal India
Top losers
Kotak Mahindra Bank
Mahindra & Mahindra
Adani Enterprises
Trading remained mixed across the broader market.
• Around 166 stocks touched fresh 52-week highs, including Apollo Hospitals, Aurobindo Pharma, Bharat Forge, Dr Reddy's Laboratories, GMR Airports, Oracle Financial Services Software and Torrent Pharmaceuticals.
• Nearly 98 stocks hit 52-week lows, including HCL Technologies, Bharti Hexacom, LTIMindtree, Patanjali Foods, Persistent Systems, PI Industries, Supreme Industries, Swiggy and UPL.
Vodafone Idea, YES Bank, Canara Bank, NHPC, Samvardhana Motherson International, Adani Power, Saksoft and GMR Airports were among the most actively traded stocks on the NSE by volume.
Analysts believe the Nifty remains in a consolidation phase.
The 24,000 level continues to be the immediate pivot.
A fall below 23,800 could trigger further weakness towards the 23,650-23,500 zone.
On the upside, a sustained move above 24,070-24,250 would be required to revive bullish momentum, with the next target around 24,600.
Market experts expect traders to remain focused on global geopolitical developments, crude oil prices and the upcoming June quarter earnings season for further direction.