The benchmark equity indices Sensex and Nifty declined on Monday, dragged down by selling pressure in information technology stocks and geopolitical concerns.
At around 2:15 p.m., the Sensex fell 403.68 points or 0.47 percent to 85,358.33, while the broader Nifty slipped to 26,224.95, down 103.60 points or 0.39 percent.
Earlier in the day, Sensex touched an intraday high of 85,883.50, while Nifty scaled a fresh all-time high of 26,373.20.
Key factors behind market decline
Trump threatens tariff hike: US President Donald Trump on Sunday said Prime Minister Narendra Modi “knew he was not happy” with India’s purchases of Russian oil and that Washington could raise tariffs on New Delhi “very quickly”. He made the remarks while speaking to reporters aboard Air Force One on his way from Florida to Washington DC. Market participants said such comments added to uncertainty and led to a cautious approach among investors.
“The year 2026 has begun with major geopolitical developments which can have profound consequences. The US action in Venezuela has the potential to further destabilise global geopolitics,” V K Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd, said.
Rupee declines: The rupee weakened by 4 paise to 90.24 against the US dollar in early trade. At the interbank foreign exchange market, the domestic unit opened at 90.21 and slipped further amid geopolitical uncertainties and demand for the American currency.
According to forex traders, the rupee is expected to remain under pressure due to global developments, even as lower crude oil prices may provide some support.
