Market Wrap: Sensex down 322 points, Nifty below 26,300, IT dip offsets earnings optimism

Indian equities ended lower on Monday, with losses in IT stocks and concerns over additional US tariffs on the Nifty and Sensex, offsetting a flurry of upbeat corporate updates that boosted strong quarterly earnings expectations.

The BSE Sensex ended down 322.39 points, or 0.38%, at 85,439.62, while the NSE Nifty 50 shed 78.25 points, or 0.30%, at 26,250.30.

Among the 30 Sensex stocks, HDFC Bank, Infosys, HCL Technologies, Bajaj Finance and Tata Consultancy Services declined with losses ranging from around 1% to 2%.

Midcap stocks slipped 0.2%, while small-cap stocks outperformed, rising 0.5% on the day.

HDFC Bank, the largest constituent on the benchmark index, saw loan growth trailing deposit growth, falling 2.4% after its December-quarter business update, raising concerns about funding costs.

IT shares, which derive a significant portion of their revenue from the US, fell 1.4% ahead of the sector’s earnings season that begins next week. HCL Technologies fell 2.2%, while Tech Mahindra shed nearly 1%.

Expert opinions

Domestic markets started the first full week of 2026 cautiously, as Indian 10-year bond yields reflected higher government debt expectations, said Vinod Nair, head of research at Geojit Investments. territory

“Early Q3 trends in bank credit/advances suggest strong momentum, supporting overall optimism. Globally, investors await key US economic data and Fed guidance, while the BoJ has backed its hawkish stance. Looking ahead, Q3 earnings will dominate focus and guide near-term market trends,” sentiment remained moderately positive.

More to come….