Indian equity benchmarks ended Monday’s trading session in the red, snapping the momentum built over the previous few days, as renewed concerns over the possibility of additional US tariffs dampened investor sentiment. While the broader mood remained cautious, selective buying driven by encouraging corporate updates and hopes of stronger quarterly earnings helped contain deeper losses toward the close.
The S&P BSE Sensex declined by 322.39 points to settle at 85,439.62, while the NSE Nifty50 shed 78.25 points to finish the day at 26,250.30, reflecting a largely subdued trading session across key sectors.
Vinod Nair, Head of Research at Geojit Investments Limited, said domestic markets entered the first full trading week of 2026 on a guarded note. He pointed out that movements in India’s 10-year bond yields suggested expectations of higher government borrowing, which weighed on market confidence. At the same time, he highlighted some supportive macro indicators, noting that GST collections for December rebounded after a slowdown in November, manufacturing PMI remained comfortably in expansionary territory despite moderating, and early trends in third-quarter bank credit growth continued to show strong momentum, all of which helped sustain underlying optimism.
On the stock-specific front, Bharat Electronics emerged as the top gainer, climbing 2.65 per cent. Hindustan Unilever followed with a gain of 1.62 per cent, while Tata Steel rose 1.56 per cent. UltraTech Cement added 1.53 per cent and Axis Bank advanced 1.46 per cent, providing some support to the benchmark indices.
On the downside, HDFC Bank weighed the most on the market, falling 2.35 per cent. Infosys declined 2.09 per cent, HCL Technologies slipped 2.08 per cent, Bajaj Finance dropped 1.21 per cent, and TCS ended 1.17 per cent lower, collectively dragging the indices down by the end of the session.
Looking ahead, Nair said global investors remain focused on upcoming US economic data releases and guidance from the Federal Reserve, while the Bank of Japan’s reaffirmation of its tightening stance is also being closely watched. He added that the upcoming third-quarter earnings season is likely to dominate market attention in the near term and shape short-term trends, with overall sentiment still leaning moderately positive despite near-term volatility.
