India’s benchmark stock indexes fell on Monday on broad-based profit booking, while an uptick in information technology shares on rising expectations of a Federal Reserve rate cut in December capped losses.
The Nifty 50 fell 0.42% to 25,959.50 and the BSE Sensex lost 0.39% to 84,900.71. Both benchmarks are trading about 1.3% below their all‑time highs hit in September 2024.
However, they have risen in six of the eight weeks since early October, driven by an improving earnings outlook, consumption revival due to tax cuts, record-low inflation, and steady domestic inflows.
“Given the swift, one-way rise in recent weeks, a mild corrective phase could not be entirely ruled out as the benchmarks took a breather, witnessing measured profit-taking,” said Dhupesh Dhameja, derivatives research analyst at SAMCO Securities.
On the day, fifteen of the 16 major sectors logged losses. The broader small-caps and mid-caps fell 0.9% and 0.3%, respectively.
High-weightage IT stocks rose 0.4%, cushioning the benchmarks from steeper losses.
The odds of a Fed rate cut in December have risen after New York Fed President John Williams hinted at near‑term easing on Friday. India’s IT firms earn a large share of their revenue from the United States. A rate cut would support growth in the world’s largest economy and revive client spending, potentially boosting IT earnings.
Other Asian markets added 0.8% on the day on rising U.S. rate cut hopes. Lower U.S. rates make emerging markets more attractive for foreign investors.
Meanwhile, the Indian rupee strengthened on the day, after hitting a fresh record low of 89.49 on Friday, with traders attributing the reversal to the central bank intervention.
Among individual stocks, Tech Mahindra rose 2.4% as brokerages reiterated confidence in an earnings turnaround in fiscal 2027.
Hindustan Aeronautics fell 3.3% after its Tejas fighter jet crashed during an aerial display at the Dubai Airshow on Friday.
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