India’s benchmark indexes edged lower on Monday, snapping a four-session rally, as profit-taking in financials near record highs overpowered optimism from easing geopolitical tensions.
The Nifty 50 shed 0.47% to 25,517.05 and the BSE Sensex fell 0.54% to 83,606.46.
Both indexes had gained 2.7% over the prior four sessions and added 3.1% and 2.7% in June, marking their fourth consecutive monthly advance.
The Nifty and Sensex are now just about 2.9% and 2.8% below their all-time high levels hit in September.
Indian markets have held firm despite global headwinds, but elevated valuations near record highs are triggering selective profit-taking, said Gaurav Garg, analyst at Lemonn Markets Desk.
On the day, eight of the 13 major sectors logged losses. High-weight financials, which hit a record high on Friday, lost 0.6%.
The heaviest stock in the benchmark indexes HDFC Bank lost about 0.7%.
Meanwhile, small- and mid-cap indexes outperformed, rising 0.5% and 0.6%, respectively.
Reliance, financials lead rise in Indian shares
Other Asian markets also fell, while the dollar softened on bets that weaker U.S. jobs data could prompt deeper rate cuts.
Among individual stocks, Sigachi Industries slumped 11.5% after an explosion at its Hyderabad unit led to a fire and killed at least eight people and injured over 26, according to police.
Torrent Pharma rose 2% after announcing plans to acquire a 46.4% stake in JB Chemicals from private equity firm KKR. JB Chemicals dropped 6.8% following the deal, which was priced at a discount to its last close.
Alembic Pharma jumped 7.3% after getting U.S. drug regulator’s nod for an injection used to treat certain types of cancer including ovarian cancer.
RBL Bank climbed 3.8% after Citi projected a 15.4% upside over the next 90 days, citing expectations of a rebound in June-quarter earnings.
State Bank of India gained about 2%, leading public sector banks 2.7% higher after JPMorgan hiked its price target.
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