CHENNAI: Indian equity benchmarks ended lower on Monday (January 5), as early optimism faded and investors locked in gains after recent record highs. The session was marked by volatility, with frontline indices swinging between modest gains and losses before settling in the red by the close amid selective selling in heavyweight stocks.
The BSE Sensex slipped around 320 points to finish near the 85,440 level, while the NSE Nifty 50 declined by about 75–80 points to close around 26,250. Both indices had opened on a mildly positive note and briefly traded higher in the first half of the session, supported by selective buying in banking and consumer names. However, the momentum proved short-lived as profit-taking emerged across sectors, dragging the benchmarks lower in afternoon trade.
Information technology stocks were among the key laggards, reflecting cautious sentiment over global demand conditions and ongoing uncertainty around overseas markets. Selling pressure in select large-cap financials and energy stocks also weighed on the indices, offsetting gains seen in a handful of private banks and defensive consumer stocks. Broader market sentiment remained mixed, with mid-cap shares underperforming the benchmarks, while small-cap stocks showed relatively better resilience.
Market participants appeared wary after the recent rally that pushed indices to fresh highs, choosing to pare exposure at elevated levels. Global cues remained a source of caution, with investors tracking developments in international energy markets, geopolitical signals and expectations around monetary policy trends. These factors, combined with valuation concerns, limited the appetite for aggressive buying despite the absence of negative domestic triggers.
"President Donald Trump’s renewed remarks on potential tariff hikes against Indian imports linked to India’s continued purchases of Russian oil added a layer of geopolitical caution to global markets, keeping risk appetite in check during today’s session. Additionally, the domestic bond yields moved higher after the size of the state government borrowing programme exceeded expectations, raising supply-side concerns in the debt market and keeping equity sentiment under check," said R Ponmudi, CEO of brokerage and wealth manager Enrich Money.
By the close, market breadth was slightly negative, indicating that declines outnumbered advances across the broader market. Volatility edged up as intraday swings reflected indecision among traders. Overall, Monday’s trade suggested that while the underlying trend remains constructive, investors are becoming increasingly selective and sensitive to global developments as the new year’s trading gathers pace.