Sensex Retreats 250 Points from Day’s High, Nifty Below 25,950 as Markets Pare Gains

Sensex Falls 250 Points from Day’s High, Nifty Slips Below 25,950 as Profit Booking Hits Markets

Stock Market Today: Indian equity benchmarks pared early gains on Monday as investors booked profits at higher levels, dragging indices off their intraday peaks. The market mood turned cautious amid a rise in global crude prices and an uptick in volatility.

The BSE Sensex, which had rallied 720 points or 0.85% to an intraday high of 84,932.08, reversed part of those gains and traded around 84,733.49, down nearly 250 points from the day’s peak. Meanwhile, the NSE Nifty 50 slipped below the crucial 26,000 mark, retreating to 25,953.35 after touching an early high of 26,005.95.

The intraday volatility reflected investor caution following the recent market rally and renewed global concerns.

Profit Booking Drags Heavyweights After Strong Rally

The primary trigger for Monday’s market reversal was profit booking across major sectors, particularly in select heavyweights. After a robust rally last week, investors chose to lock in gains, leading to mild selling pressure.

Pharma stocks witnessed notable profit-taking, while Bharat Electronics, Kotak Mahindra Bank, Bajaj Finance, and Adani Ports & SEZ were among the major laggards in the Nifty pack, each falling up to 2%.

Analysts noted that short-term traders preferred to trim positions amid stretched valuations and mixed global cues. “The markets have seen a sharp up-move over the past sessions. A mild phase of consolidation or correction at higher levels is natural as investors reassess their positions,” said a Mumbai-based fund manager.

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Rising Crude Oil Prices Add to Inflation Worries

A key global factor weighing on investor sentiment was the rise in crude oil prices. International benchmark Brent crude climbed 0.23% to USD 66.09 per barrel, triggering concerns over India’s import bill and inflationary pressures.

India, being one of the largest importers of crude oil, remains sensitive to fluctuations in global energy prices. A sustained uptick in oil could worsen the country’s current account deficit (CAD) and add to inflationary concerns, compelling the Reserve Bank of India (RBI) to maintain a cautious monetary stance.

Market watchers said higher crude prices tend to pressure oil marketing companies, transport, and manufacturing sectors while potentially dampening consumption-driven growth in the medium term.

Volatility Index Rises — Investors Turn Cautious

Adding to the cautious tone was a notable rise in the India VIX, the volatility index that gauges market fear and investor sentiment. The index jumped 7.68% to 12.48, signaling a build-up of uncertainty among traders ahead of key macroeconomic data and global market triggers.

A higher VIX typically suggests increased volatility expectations, often leading to risk aversion and short-term profit-taking.

“Markets seem to be entering a consolidation phase where investors are adopting a wait-and-watch approach. The rise in VIX indicates heightened caution, especially near psychological resistance levels,” said a market strategist at a domestic brokerage.

Technical Outlook: Nifty’s Resistance Seen Near 26,000

On the technical front, analysts observed that the Nifty’s recent momentum hinted at an early attempt to push higher, though it met resistance near the 26,000 mark.

Anand James, Chief Market Strategist at Geojit Financial Services, highlighted that despite Friday’s recovery, the Nifty struggled to sustain above key resistance zones.

“Though Friday’s recovery was stalled near VWAP resistance, the formation of a morning star pattern raises prospects of a return to the upside trajectory aiming at 26,186,” James noted.
“However, if the initial upswing fails to clear the 25,940–26,000 barrier, downsides may resume aiming 25,590–25,400.”

His analysis suggests that 25,940–26,000 remains a critical short-term resistance zone, while 25,400 could act as key support in case of further weakness.

Broader Market Snapshot and Sector Performance

The broader market mirrored the benchmark trend, with the Nifty Midcap 100 and Nifty Smallcap 100 indices trading mixed. Sectors like IT, FMCG, and energy saw selective buying, while financials, pharma, and metals lagged.

Investors continued to rotate funds between defensives and cyclicals, awaiting fresh triggers from upcoming earnings announcements and global economic data.

Foreign institutional investors (FIIs) remained net buyers last week, but the pace of inflows appeared to moderate on Monday, reflecting caution after the strong rally seen earlier in the month.

Markets Likely to Stay Range-Bound in the Near Term

Analysts expect the markets to trade range-bound in the near term, with volatility likely to persist. The focus will now shift to corporate earnings, global crude movement, and US Federal Reserve commentary later this week.

“Markets may continue to oscillate in a narrow range as investors book profits at higher levels while awaiting new cues. The undertone remains positive as long as Nifty holds above 25,800,” said another analyst.

For now, the mood remains cautiously optimistic, with traders balancing optimism from domestic economic strength against global uncertainties.

• Nifty 50
• Bank Nifty
• Sensex