FPJ News Service mumbai

Indian equities declined on Monday, with benchmark indices succumbing to renewed caution as investors grappled with a shortage of fresh catalysts. The BSE Sensex slipped 331.21 points to close at 84,900.71, while the NSE Nifty fell 108.65 points to 25,959.50, both dragged lower in a subdued, trigger-starved session.

“A US–India trade deal could be concluded at any time, and weakness in the global AI trade may prompt FIIs to redirect flows towards India. Investors should prioritise large-caps and high-quality mid-caps with clear growth trajectories. Small-caps, by contrast, remain broadly overvalued,” market gurus opined.

Vinod Nair, Head of Research at Geojit Investments, said the market, despite spending much of the day in a narrow yet positive range, faltered in the final half-hour as expiry pressures set in and the Nifty50 failed to cling to the key 26,000 level. “Sentiment was restrained by concerns that the interim US–India trade agreement may face further delays. Even so, pockets of strength were visible, with selective IT buying cushioning the fall,” he said.

Nair noted that the global backdrop remained notably constructive. “Renewed expectations of a December Federal Reserve rate cut — fuelled by mounting downside risks to US employment data — have kept global markets buoyant. On the domestic front, robust macro fundamentals, including strong GDP growth, contained inflation, stable oil prices and a healthy earnings outlook for the second half of the fiscal year, continue to underpin market resilience.”

Dr V. K. Vijayakumar, Chief Investment Strategist at Geojit Investments, pointed out that earlier attempts by the Nifty and Sensex to break past their September 2024 highs fizzled out amid persistent FII selling and the failure of the expected US–India trade deal to materialise. Concerns surrounding visibility of FY27 earnings growth further tempered sentiment.