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Indian equity benchmarks ended lower on Monday as investor sentiment turned cautious amid geopolitical concerns, offsetting positive cues from select corporate updates.

The BSE Sensex declined 322.39 points, or 0.38 per cent, to close at 85,439.62, while the NSE Nifty 50 slipped 78.25 points, or 0.30 per cent, to settle at 26,250.30, after trading below the 26,250 mark during the session.

IT stocks remained under pressure, weighing on the benchmarks. The Nifty IT index fell 1.43 per cent, with Infosys down 2.13 per cent, HCL Technologies declining 2.08 per cent, TCS slipping 1.17 per cent, and Tech Mahindra losing 0.78 per cent. HDFC Bank also dropped 2.23 per cent, adding to the downside.

Among Sensex gainers, BEL rose 2.59 per cent, Hindustan Unilever advanced 1.62 per cent, Tata Steel gained 1.56 per cent, UltraTech Cement climbed 1.53 per cent, and Axis Bank added 1.46 per cent. Asian Paints, ICICI Bank, Maruti Suzuki, SBI and Titan also closed higher.

On the losing side, Infosys, HDFC Bank, HCL Technologies, Bajaj Finance and Reliance Industries were among the top drags on the index.

Also Read: Auto Stocks Rally: Maruti, Eicher, M&M power Nifty Auto to record high despite flat market

Sector-wise, FMCG stocks outperformed, with the Nifty FMCG index rising 0.68 per cent. Realty stocks gained momentum, with the Nifty Realty index jumping 2.07 per cent. Metal, PSU Bank and Consumer Durables indices also closed in the green.

In contrast, weakness was seen in IT, Oil and Gas, and Pharma. The Nifty Oil and Gas index slipped 1.02 per cent, while the Nifty Pharma fell 0.21 per cent.

Broader markets showed mixed trends. The Nifty Midcap indices ended marginally lower, while small-cap stocks outperformed, with the Nifty Smallcap 50 rising 0.46 per cent and the Nifty Smallcap 100 gaining 0.53 per cent.

Among thematic indices, the Nifty India Defence index rose 2.04 per cent, bucking the broader market trend.

Speaking on market movements, Zee Business Managing Editor, Anil Singhvi, explained, “The current weakness in the market is mainly due to profit booking and some FII selling. There is no major external trigger causing the decline. This is a typical scenario after indices reach life highs. A short pause or minor correction is natural in such conditions.”

He added, “The decline is not uniform across all sectors. Small-cap and mid-cap indices are holding up better because FII selling is concentrated in large-cap stocks. Investors also see buying opportunities near support levels in certain stocks and sectors.”

On specific stocks, Singhvi said, “HDFC Bank, which showed some weakness today, is near a strong support zone around 970–975. This level has been held multiple times in the past, and buying interest may return if the stock touches this range. HDFC Bank will likely lead the banking sector rally once the correction stabilises.”

He further explained the role of options market dynamics in today’s fall, “The high put-call ratio had made the market slightly overbought. Profit booking was expected as traders adjusted positions. The put-call ratio has now eased from 1.46 to 1.21, reducing the pressure on the market.”

"The decline is a combination of routine profit booking, minor FII selling, and technical adjustments. There is no reason for panic. The market is simply pausing after recent gains before resuming its uptrend," Anil Singhvi concluded.

As of 05 January 2026, a total of 3,258 stocks were traded on the NSE. Among these, 1,208 stocks advanced, 1,943 declined, and 107 remained unchanged. There were 129 stocks hitting their 52-week high and 85 at their 52-week low.

Additionally, 65 stocks were in the upper circuit and 81 in the lower circuit. The total market capitalisation on the NSE stood at Rs 478.47 lakh crore.