Indices end in red on Monday despite a dramatic recovery from intraday

Despite the initial slump, selective buying in index heavyweights helped stem the fall. Stocks like Adani Ports, M&M, Eternal (Zomato), PowerGrid, HUL, Bajaj Finserv, ITC, ICICI Bank, Asian Paints, and Nestle India gained between 0.4 per cent and 2 per cent, supporting the recovery.

Broader markets outperformed the benchmarks, as investor interest shifted to mid- and small-cap counters. The Nifty MidCap and Nifty SmallCap indices ended higher by 0.62 per cent and 1.1 per cent, respectively, buoyed by stock-specific action and relative valuation comfort.

On the sectoral front, Nifty Metal and Nifty IT were the biggest laggards, each down 0.7 per cent, hurt by the tariff news and ongoing global uncertainty. In contrast, Nifty Realty and Nifty PSU Bank indices surged over 2 per cent each, benefiting from continued optimism around domestic economic recovery and credit growth.

Going forward, market participants are likely to keep a close watch on global cues, particularly developments in the US and Europe, as well as the RBI’s policy stance. Volatility may remain elevated as traders assess macroeconomic data and geopolitical developments.