Indian shares subdued after recent gains on monsoon worries

Indian shares slipped on Monday, pausing after their longest weekly winning streak of 2026, as concerns over a weak monsoon blunted relief from easing Middle East tensions and lower crude prices.

The retreat also reflected fatigue after a three-week rally, with analysts saying softer oil and rupee-support measures were largely priced in.

The benchmark Nifty 50 fell 0.46% to 23,946.25, while the BSE Sensex lost 0.48% to 76,728.37.

The U.S. and Iran agreed to halt attacks on each other and renew talks over their dispute over the Strait of Hormuz, a U.S. official said on Sunday.

Brent crude traded at $73 a barrel.

“Easing crude prices are certainly positive for Indian equities, but fresh upside is limited as investors remain wary of the U.S. and Iran alternating between conciliatory signals and renewed threats,” said Saurabh Jain, deputy vice president of equities at SMC Global.

“Markets are also consolidating as investors wait to see how India’s monsoon progresses. June rainfall is running at a 43% deficit, and only a pickup in July could revive optimism, given its implications for inflation, demand and sectors such as autos and consumer goods,” Jain said.

Eleven of the 16 major sectors logged losses. Broader small-caps and mid-caps fell 0.6% and 0.4%, respectively.

Auto index dropped 2.1% on worries that a weak monsoon could hurt demand for two-wheelers, entry-level cars and tractors.

IT index fell 1.1%, dragged by a 11.2% slide in Persistent Systems on concerns over its acquisition of Munich-based digital engineering firm Nagarro SE.

Kotak Mahindra Bank lost 3.3% after CEO and Managing Director Ashok Vaswani said he would not seek reappointment.

Dr. Reddy’s gained about 2% after the U.S. drug regulator completed an inspection at its Bachupally facility with seven observations, which the drugmaker said it would address within the stipulated timeline.