Equity benchmarks slipped up to 1% on Monday as investors booked profits in small- and mid-cap stocks and trimmed positions in heavyweight counters. Persistent foreign fund outflows and caution ahead of the US Federal Reserve meeting also weakened sentiment. By 2:20 p.m., the Sensex was down 802 points at 84,909, while the Nifty fell 289 points to 25,896.
InterGlobe Aviation, Bharat Electronics and JSW Steel were the top Nifty laggards, losing as much as 7%, while HDFC Life and Tech Mahindra posted modest gains. Market breadth was weak, with losers outnumbering gainers two-to-one.
Analysts said investors turned cautious ahead of the Fed’s policy outcome and other global central bank meetings this week. Heavy selling hit small- and mid-cap stocks, dragging the Nifty Smallcap100 and Midcap100 down nearly 2% each. Continued FII selling—₹438 crore on Friday—added pressure, while a weakening rupee, which slipped to 90.11 per dollar, further dampened sentiment. Rising crude prices and a higher India VIX underscored market nervousness.
Technically, the Nifty faces resistance at 26,300–26,500, with support expected near 25,950–26,000, according to analysts.