Sensex slips over 650 points from day’s high, Nifty tests 24,100; what analysts say

Indian equity benchmarks traded in positive territory on Monday afternoon but retreated from their day’s highs, as gains in pharma, healthcare and metal stocks offset weakness in IT, private banks and media shares.

At last check, the 30-share BSE Sensex pack was up 334.69 points or 0.44 per cent at 77,248.19, while the NSE Nifty index rose 95 points, or 0.40 per cent, to 24,092.55. During the session, Sensex slipped 662.56 points from its day’s high of 77,910.75, while Nifty declined 197.65 points from 24,290.20 level.

Support for the benchmarks came from index heavyweights such as Reliance Industries Ltd (RIL), Larsen & Toubro Ltd (L&T), HDFC Bank Ltd, ICICI Bank, Hindustan Unilever Ltd (HUL), Adani Ports and Special Economic Zone Ltd, Bajaj Finance Ltd and Eternal Ltd, helping markets remain in the green despite the pullback.

The broader market also held firm, with the Nifty Midcap 100 index rising 0.41 per cent and the Nifty Smallcap 100 index gaining 0.31 per cent.

Kranthi Bathini, Equity Strategist at WealthMills Securities, flagged a bout of profit booking at elevated levels in today’s session. He underscored that Nifty50’s ability to hold above the 24,000 mark will remain a key indicator for near-term market sentiment.

Market participants are closely tracking the results of key state elections, which may influence near-term sentiment. However, global cues — particularly crude oil movements amid geopolitical tensions in West Asia — are expected to play a more decisive role in shaping the broader trend.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said, “Today’s market action may be unduly influenced by the state election results with focus on West Bengal. But it is important to note that this will be only a very short-term sentimental impact. The real market trend will be guided by the crude oil prices, which, in turn, will be decided by the news and happenings in West Asia. US President Trump’s declaration that the US will help and guide ships through the Strait of Hormuz has brought Brent crude down to around $108 level. Also, there is a latest proposal from Iran to the US delivered through Pakistan.”

He added, “Another major factor influencing market behaviour will be the FII activity. The continuing momentum in the AI trade implies that FIIs will continue to sell in India. This might keep largecaps under check with activity moving significantly to the broader market. Therefore, any rally triggered by the domestic political developments will be used by FIIs to sell more. The global AI trade will continue to weigh on markets in the near-term.”

Ponmudi R, CEO of Enrich Money, said, “Markets enter the week with a cautious bias, bracing for a politically sensitive backdrop as attention turns to key state election outcomes across Tamil Nadu, Kerala, West Bengal, Assam and Puducherry. While state elections typically carry less structural significance than national polls, they remain important in shaping perceptions around policy continuity, regional growth prospects and investor confidence.”

The Enrich Money CEO also said, “State elections are therefore likely to act more as a near-term sentiment catalyst than a driver of structural trend change. The broader market trajectory will continue to be dictated by global factors — particularly crude oil prices, currency movements and institutional flows. Brent crude remains elevated in the $100–103 range after having sustained levels above $110 earlier, underpinned by persistent supply-side disruptions. The situation around the Strait of Hormuz, a critical global oil transit corridor, continues to embed a significant risk premium, keeping energy markets tight and prone to volatility.”