Indian stock markets slipped on Monday after a strong three-day rally, as losses in IT stocks and fresh worries over higher US tariffs pulled indices lower. Still, positive business updates from a few companies helped limit the overall fall.
The Nifty 50 briefly touched a new all-time high of 26,373 during the session, but could not hold on to the gains. The index ended the day down 0.30 percent at 26,250.3. The Sensex also weakened, closing 0.38 percent lower at 85,439.62.
Both benchmarks had risen around 1.5 percent each over the previous three sessions, with the Nifty hitting record levels, prompting some investors to book profits.
Asian markets were mostly higher, while oil prices eased as investors weighed the impact of recent US military action in Venezuela. However, in India, sentiment turned cautious.
Out of 16 major sector indices, 10 closed lower. IT stocks were among the worst hit, falling 1.4 percent. Companies in this sector earn a large share of their revenue from the US, and concerns over tariffs and slowing demand weighed on the stocks ahead of quarterly results due from next week. Citi Research said the recovery in the IT sector is likely to be slow and uneven.
HCLTech fell 2.2 percent and Tech Mahindra slipped around 1 percent after CLSA downgraded both stocks.
Trade concerns also added pressure after US President Donald Trump warned that tariffs on India could be raised further if New Delhi does not cut purchases of Russian oil. The US has already imposed tariffs of up to 50 percent on Indian goods, with half linked to India’s Russian crude imports.
In the broader market, small cap stocks rose 0.5 percent, while mid-cap stocks edged down 0.2 percent.
HDFC Bank, the heaviest stock on the benchmarks, fell 2.4 percent after its December quarter update showed loan growth outpacing deposit growth. Macquarie warned that deposit growth estimates could face downside risks.
On the positive side, Sobha jumped 5.8 percent and CSB Bank surged 15.4 percent after strong quarterly business updates.
Meanwhile, US markets ended mixed on the first trading day of 2026, offering little direction to domestic investors.
