Markets Extend Losses For Second Straight Session, Sensex Slips 331 Points As Investors Turn Cautious

Mumbai: Equity markets witnessed another day of losses on Monday as benchmark indices Sensex and Nifty closed lower amid last-minute selling and absence of major market triggers. After opening on a positive note, the 30-share BSE Sensex erased gains and settled 331.21 points lower at 84,900.71, down 0.39 per cent. During intraday trade, it slipped as much as 521.81 points to touch 84,710.11.

The broader NSE Nifty also came under pressure, dropping 108.65 points or 0.42 per cent to close at 25,959.50. The decline marked the second consecutive session of losses for both headline indices.

Market Movers and Global Cues

Among the Sensex constituents, Bharat Electronics, Mahindra & Mahindra, Tata Steel, UltraTech Cement, Bajaj Finserv and Tata Motors Passenger Vehicles emerged as major laggards. In contrast, Tech Mahindra, Asian Paints, Infosys, Adani Ports, Sun Pharma and HDFC Bank offered some cushion to the market.

Asian markets presented a mixed picture, with Shanghai’s SSE Composite and Hong Kong’s Hang Seng ending in positive territory, while South Korea’s Kospi closed lower. Japan’s markets remained shut due to a holiday. European stocks were trading in the green, and US markets had ended higher on Friday, offering a mildly supportive global backdrop.

Cautious Sentiment Ahead of Key Events

Vinod Nair, Head of Research at Geojit Financial Services, noted that the market slipped in the last half hour, influenced by Monday expiry pressures as Nifty struggled to sustain above the 26,000 mark. He added that investor sentiment remained cautious due to uncertainties surrounding the interim US–India trade agreement. However, selective buying in IT stocks helped limit deeper losses.

Nair also highlighted optimism in global markets driven by expectations of a potential US Federal Reserve rate cut in December, following weak employment data.

Foreign institutional investors (FIIs) net sold equities worth Rs 1,766.05 crore on Friday, while domestic institutional investors (DIIs) provided support by purchasing Rs 3,161.61 crore worth of stocks. Brent crude prices dipped 0.98 per cent to USD 61.95 per barrel, adding to the overall cautious tone.

Friday’s session had also seen losses, with the Sensex falling 400.76 points to 85,231.92 and the Nifty sliding 124 points to 26,068.15.