Sensex and Nifty fall as investors book profits on Monday
The benchmark indices reversed early gains to trade lower following a seven-session rally, according to Moneycontrol.
The Sensex and Nifty traded in negative territory on Monday morning after initially rising in early trade. At approximately 10:45 am, the Sensex fell 402.01 points or 0.5 per cent to 80,597.39, while the Nifty dropped 141.80 points or 0.57 per cent to 24,844.60.
According to Moneycontrol, profit booking after a seven-session rally was a primary driver for the decline. The indices had previously gained around 10.5 per cent over seven consecutive sessions ending on Friday.
Information technology stocks contributed to the weakness, with the Nifty IT index dropping 1.3 per cent. All 10 constituents of the Nifty IT index were lower, including Mphasis, which fell around 3 per cent, and HCL Technologies, Infosys, Coforge, and TCS, which declined between 1 per cent and 2 per cent.
The decline in IT shares followed reports regarding a bipartisan US Senate bill that could fast-track AI data centre and power infrastructure expansion. Investors expressed concerns that this could increase competition for Indian firms in AI-led technology services.
In other news, Divi's Laboratories rose 4.6 per cent after reporting a 64 per cent year-on-year increase in quarterly profit. This helped the Nifty Pharma index climb 1.6 per cent.
Anand James, Chief Market Strategist at Geojit Investments, noted the possibility of mean reversion, identifying 24,860-24,775 as a downside marker for the Nifty.