Nifty, Sensex Close Lower as Profit Booking Continues Amid US-Iran Concerns

Indian equity markets closed in the red on Monday as investors booked profits and remained wary of geopolitical developments involving the United States and Iran. Concerns over a subdued first-quarter earnings season, inflationary pressures and an uncertain monsoon outlook further dampened market sentiment.

Profit Booking Weighs on Benchmark Indices

The Nifty 50 settled at 23,946.25, down 109.75 points or 0.46 per cent, while the BSE Sensex fell 372.10 points, or 0.48 per cent, to close at 76,728.37.

According to market experts, investors preferred to remain cautious amid uncertainty over the durability of the interim peace agreement between the United States and Iran.

Vinod Nair, Head of Research at Geojit Investments Limited, said, "Profit booking persisted near key psychological levels as investors remained cautious about the sustainability of the interim US-Iran peace agreement. The market currently lacks clear near-term direction, with expectations for the Q1FY27 earnings season remaining subdued amid supply constraints, persistent inflationary pressures, and a weak monsoon outlook, all of which are likely to weigh on margins."

He noted that selling pressure was broad-based across sectors, although defensive pockets of the market continued to attract investor interest.

Pharma, Metal Stocks Buck the Trend

Among NSE sectoral indices, only Nifty Pharma and Nifty Metal managed to end the session in positive territory. Nifty Pharma gained 1.03 per cent, while Nifty Metal advanced 0.80 per cent.

All other major sectoral indices closed lower. Nifty Auto declined 2 per cent, Nifty IT fell 1.07 per cent, Nifty FMCG slipped 0.59 per cent, Nifty Media lost 1.32 per cent and Nifty PSU Bank dropped 0.95 per cent.

Nair said defensive sectors such as pharmaceuticals and healthcare outperformed due to their stable demand outlook and stronger earnings visibility.

Among Nifty 50 constituents, Max Healthcare, Dr Reddy's Laboratories, Coal India, Eternal, Bharat Electronics Limited (BEL), Trent, SBI Life Insurance, Power Grid and Hindalco emerged as the top gainers.

On the losing side, Kotak Mahindra Bank, Mahindra & Mahindra, Adani Enterprises, Tata Motors and InterGlobe Aviation (IndiGo) led the declines.

Investors Await Key US Economic Data

Market participants are also closely watching upcoming US nonfarm payrolls data, which could influence the US Federal Reserve's policy trajectory and expectations regarding future interest-rate decisions.

In the commodities market, gold prices fell 0.96 per cent to Rs 1,42,762 per 10 grams for 24-carat gold, while silver prices declined 1.27 per cent to Rs 2,18,599 per kilogram.

The Indian rupee was trading at 94.54 against the US dollar.

Brent crude oil prices rose 1.54 per cent to USD 73.10 per barrel amid renewed tensions involving the United States and Iran, though oil markets avoided any sharp spike.

Across Asia, Hong Kong's Hang Seng index gained 1.38 per cent, Taiwan's weighted index rose 0.95 per cent, Singapore's Straits Times advanced 0.33 per cent and Japan's Nikkei 225 edged up 0.03 per cent. South Korea's KOSPI index was the only major regional laggard, slipping 0.20 per cent.

(With inputs from ANI)