Mumbai, Sep 7: Indian equity markets ended lower on Monday, with the benchmark indices declining 0.5 per cent as selling pressure in IT, metal and PSU bank stocks weighed on investor sentiment. Rising geopolitical tensions, volatile crude oil prices and concerns over the global interest-rate outlook added to the cautious mood.
The Sensex fell 382.62 points, or 0.50 per cent, to close at 76,132.81, while the Nifty 50 declined 118.55 points, or 0.50 per cent, to settle at 23,779.15.
IT stocks remained under pressure as stronger-than-expected US jobs data fuelled expectations of tighter monetary policy from the US Federal Reserve. Investors are concerned that higher interest rates could weigh on corporate spending and demand for technology services, particularly in key overseas markets.
Metal, PSU bank, realty and media stocks also faced selling during the session. The weakness reflected a cautious approach among investors as they assessed the possible impact of geopolitical tensions and fluctuating oil prices on inflation, business costs and economic growth.
Among individual stocks, Infosys, SBI Life Insurance and HDFC Life Insurance were among the major Nifty losers. Pharma and healthcare stocks, however, showed relative resilience and were among the better-performing pockets of the market.
The broader market remained mixed. The Nifty MidCap index declined 0.46 per cent, while the Nifty SmallCap index edged up 0.02 per cent, pointing to selective buying despite the weakness in benchmark indices.
Market participants are also keeping a close watch on key technical levels. Analysts said the 23,800 mark has emerged as an important resistance zone for the Nifty after previously acting as support. A sustained move above 24,000 could improve sentiment, while the 23,750-23,700 range is likely to provide near-term support.
A decisive break below this support zone could trigger further selling and take the Nifty towards the 23,600 level, analysts said.
Crude oil prices remained another major concern for investors, with Brent crude trading near $97 a barrel amid continuing tensions in the Middle East. Higher oil prices could add to India's import bill and increase inflationary pressure, making the movement of global energy prices an important market trigger.
Investors are now expected to closely monitor developments in global interest rates, crude oil prices, geopolitical tensions and foreign fund flows. With several external factors continuing to influence sentiment, market volatility is likely to remain elevated in the near term.