Sensex Drops 400 Points as IT Stocks Weigh; Nifty Dips Below 24,900

The Indian stock market faced pressure on Monday as major indices slipped lower during afternoon trading, impacted notably by weakness in information technology shares. The Sensex declined by around 400 points, while the Nifty 50 index dropped below the 24,900 mark, reflecting cautious investor sentiment ahead of upcoming economic data.

By 1:20 PM, the Sensex was down 220.96 points, or 0.27 percent, settling near 80,778.44 points. The Nifty 50 index recorded a fall of 65.20 points, or 0.26 percent, closing near 24,920. The decline was largely driven by losses in the IT sector, which saw the Nifty IT index fall by approximately 2 percent as investors booked profits and reassessed valuations.

In contrast, the healthcare sector outperformed the broader market, with the Nifty Healthcare index gaining traction. Shares of Gland Pharma, Divi's Laboratories, and Glenmark Pharmaceuticals led the positive momentum within the space. The pharma segment also witnessed a notable milestone during the session, with the Nifty Pharma index touching a new peak at 29,224.85, supported by strong gains in stocks such as Divi's Laboratories and Laurus Labs.

Among individual stocks, Sai Life Sciences stood out with a robust 9 percent rally, hitting an intraday high of ₹1,897.30. The company recently reported a 17 percent year-on-year increase in consolidated net profit to ₹98 crore for the September quarter of fiscal year 2027, which buoyed investor confidence.

On the corporate front, Larsen & Toubro (L&T) secured a significant contract from the Noida Metro Rail Corporation, valued between ₹1,200 crore and ₹2,500 crore. The order involves the design and construction of an extension to the Noida Metro Aqua Line, a project expected to enhance urban connectivity in the region.

However, not all companies enjoyed positive market action. Shares of Jubilant FoodWorks, known for brands like Domino's Pizza and Popeyes, declined 5 percent for the second consecutive session after releasing its Q2 FY27 results. Despite the share price drop, brokerage firms maintained positive outlooks on the company’s long-term potential.

Blue Dart Express also experienced a decrease in market value, with shares falling 4 percent to ₹4,394.20 on the NSE. The decline followed muted growth in earnings before interest, taxes, depreciation, and amortization (EBITDA) margins reported for the recent quarter, prompting investor caution.

In the commodities market, precious metals extended their gains as softer crude oil prices helped ease inflation expectations. Gold prices surpassed $4,100 per ounce internationally, though the rally was somewhat tempered by ongoing speculation that the US Federal Reserve may maintain a restrictive monetary policy stance for the near term.

Overall, Monday’s trading session reflected a mixed picture. While IT stocks faced selling pressure and weighed on the index levels, pharmaceutical shares continued to attract buying interest, highlighting sector-specific dynamics within the broader market. The developments come amid a global economic backdrop marked by inflation concerns, central bank policy decisions, and ongoing geopolitical uncertainties, all of which contribute to cautious investor behavior.

Market participants will be closely watching upcoming economic indicators and corporate earnings for further direction. The current environment underscores the importance of sector diversification and careful stock selection in navigating India's equity markets.