Stock markets close lower on profit-taking

Investors stayed on the sidelines as markets await the outcome of US Fed Reserve policy meeting on Wed

PTI mumbai

Benchmark Sensex dropped nearly 119 points while Nifty snapped its eight-day winning run in a volatile trade on Monday due to profit-taking in IT and auto shares ahead of the US Fed policy meeting. Ending its five-day rally, the 30-share BSE Sensex declined by 118.96 points or 0.15 per cent to settle at 81,785.74. During the day, it hit a high of 81,998.51 and a low of 81,744.70.

The 50-share NSE Nifty settled lower by 44.80 points or 0.18 per cent to 25,069.20, halting its eight-day uptrend. Investors stayed on the sidelines as markets await the outcome of this week's US Federal Reserve policy meeting, analysts said. However, Bajaj Finance, Eternal, UltraTech Cement and Reliance Industries were among the gainers.

"Benchmark indices traded largely flat as investors remained cautious ahead of the Fed policy meeting, with the IT index witnessing profit-booking after last week's rally. While a 25-bps rate cut is largely factored in, markets await guidance on the future rate path to gauge the trajectory for bond yields.

"Strong domestic consumption continues to underpin sentiment and limit downside, while renewed optimism around trade deals and an expected earnings recovery in H2FY26 are further supporting investor confidence," Vinod Nair, Head of Research, Geojit Investments Limited, said.