Sensex falls 281 points as IT stocks drag Monday’s session

The Sensex fell 281.09 points, or 0.36 per cent, to close at 77,728.16 on Monday, while the Nifty settled 78.35 points, or 0.32 per cent, lower at 24,287.65.

Indian benchmarks extended their cautious tone from last week, with the Nifty dropping below the 24,300 mark as weakness in IT stocks and elevated crude oil prices weighed on the market.

The IT sector was the largest drag on the indices, with the Nifty IT index sliding nearly 2 per cent during the session.

Gains in metal, realty and select financial stocks helped limit the broader decline.

The Nifty Midcap index ended 0.05 per cent higher and the Nifty Smallcap index gained 0.36 per cent in broader market trade.

The session reflected ongoing investor caution amid geopolitical tensions and elevated oil prices persisting through the past week.

Trading volumes on both the BSE and NSE remained broadly in line with recent averages, even as sector-specific selling in IT names contributed to the overall index decline.

Foreign institutional investor activity remained a key factor watched by traders, alongside crude oil price movements, as both continue to influence near-term market direction.

Analysts said the divergence between the IT-led decline in the headline indices and gains in broader midcap and smallcap stocks pointed to selective, sector-specific selling rather than a broad-based sell-off across the market.

In the broader markets, the Nifty Midcap index ended 0.05 per cent higher while the Nifty Smallcap index gained 0.36 per cent, showing resilience even as the headline indices declined.

Persistent concerns over elevated crude oil prices, hovering near $89 a barrel, weighed on investor sentiment throughout Monday’s session.

Gains in metal, realty and select financial stocks helped cushion the broader market decline, preventing a steeper fall in the benchmark indices.

Monday’s session extended a cautious tone that has persisted in Indian equity markets since last week, with investors weighing geopolitical tensions alongside domestic earnings signals.

Photo by Kumar Appaiah, Wikimedia Commons, CC BY-SA 3.0