Benchmark stock market indices retreated from morning highs to close in negative territory at the end of Monday’s trading session. The S&P BSE Sensex concluded 64.77 points lower at 85,641.90, while the NSE Nifty50 finished down 27.20 points at 26,175.75. Investor profit-taking and increased volatility led to a decline in broader market indices after a record-setting rally the previous week.
Several sectors experienced slight downward pressure, although specific auto and cement stocks remained resilient. Leading gainers on the Nifty50 included Ultratech Cement, TMPV, Maruti, BEL, and Eicher Motors. Conversely, Max Health, IndiGo, Bajaj Finance, Sun Pharmaceutical, and Adani Enterprises dragged the index lower.
Vinod Nair, Geojit Financial Services’ Head of Research, noted the market’s cooling off as optimism regarding a potential RBI rate cut waned. He highlighted that the market shifted into a consolidation phase post-reaching a new peak, attributing this to diminished expectations of an RBI rate cut in December following robust Q2 GDP growth and rupee depreciation.
Nair also pointed out the cautious sentiment stemming from subdued GST collections in November due to lower tax rates. Despite this, the auto index thrived on strong November sales, supported by GST adjustments, low inflation, and robust wedding season demand. Analysts anticipate continued market volatility, driven by economic data, policy developments, and global trends, given the mixed macro signals and high valuations.
The article was published by Koustav Das on Dec 1, 2025, at 15:46 IST.