BSE Sensex drops 281 points as crude prices rise, Reliance gains

Indian shares closed lower on Monday, with the benchmark BSE Sensex down 281.09 points, or 0.36 percent, settling at 77,728.16. This decline followed investors' reactions to disappointing economic indicators from the U.S., Japan, and China, while tensions in the Middle East added to market unease.

The cautious market sentiment was exacerbated by rising Brent crude prices, which remained above $89 a barrel after a 6 percent increase last week due to renewed violence in Lebanon and tanker attacks in the Strait of Hormuz. Despite these challenges, the market showed some resilience, supported by a weaker U.S. dollar and diminishing expectations for a Federal Reserve interest rate hike next month, following recent soft data on U.S. retail sales and consumer sentiment.

The NSE Nifty index also dropped, falling 78.35 points, or 0.32 percent, to close at 24,287.65. In contrast, the BSE mid-cap and small-cap indexes saw slight gains, edging up 0.2 percent and 0.1 percent, respectively. On the BSE, market breadth was negative, with 2,344 shares declining compared to 2,099 advancing, and 231 remaining unchanged. Information technology stocks faced the most significant losses, with major players like Tech Mahindra, TCS, HCL Technologies, and Infosys seeing declines of 2 to 3 percent amid concerns over currency market volatility.

Despite the overall downturn, some stocks managed to post gains. Reliance Industries rose by 0.8 percent, Axis Bank increased by 1 percent, and Tata Steel advanced by 1.5 percent. As investors navigate these mixed signals, the focus will remain on global economic trends and geopolitical developments that could further influence market performance in the coming weeks.