The Nifty resumed its corrective decline on Monday, falling 108.85 points to close at 25,585.50, marking its lowest level in the ongoing correction. The benchmark has now slipped nearly 3.00% from its all-time high of 26,373, with weak quarterly earnings from index heavyweights and renewed global trade tensions driving the broad-based sell-off.

Market Performance Overview

The index opened with a downside gap and came under sharp selling pressure soon after the opening bell. The Nifty briefly touched an intraday low of 25,494 before staging a partial recovery that failed to sustain. The Sensex declined 324.17 points to settle at 83,246.18, reflecting widespread weakness across market segments.

Top Gainers and Losers

Market breadth remained sharply negative for the seventh consecutive session, with 3,116 stocks declining against 1,186 advances on the BSE. Notably, 438 stocks hit 52-week lows, compared with just 97 that hit 52-week highs.

Sectoral Performance and Global Factors

All sectoral indices closed in the red except Nifty FMCG, which rose 0.70%, and Nifty Auto, which edged up 0.10%. Nifty Realty shed over 2.00%, while Media and Oil & Gas indices declined 1.80% and 1.60% respectively.

Global cues remained weak as Japanese government bond yields surged, with the benchmark 10-year yield climbing to around 2.30%—the highest level since February 1999. Risk appetite was further dampened after renewed trade-related rhetoric from the US, with Trump reiterating plans to levy taxes on European countries.

Currency and Commodity Movements

The Indian rupee extended its losing streak, weakening by 5 paise to close at 90.91 against the dollar, its lowest level in a month. In commodities, silver crossed the historic ₹3.00 lakh per kg mark, reflecting intensifying safe-haven demand amid geopolitical tensions and global macro uncertainty. Gold also traded positively as rupee weakness and geopolitical concerns supported safe-haven demand.

Technical Analysis and Market Outlook

Technically, the Nifty remained under bearish control, sustaining below its 20-day EMA throughout the session. According to analysts from HDFC Securities, a decisive breach below the 25,473 marks would violate the current consolidation range, potentially accelerating the slide toward the next major support at 25,318.

Markets are expected to trade sideways, tracking global cues and ongoing earnings developments. However, any escalation on the geopolitical front could remain a key overhang for market sentiment. The focus remains on how well the index defends the crucial 25,500 support level in upcoming sessions.

Indian equity benchmarks experienced significant selling pressure on Monday as heavyweight stocks declined following a fresh round of Q3 earnings announcements. The market sentiment turned risk-off as investors reacted negatively to quarterly results from major index constituents, pushing the Nifty below the psychologically important 25,600 level.

Market Performance Overview

The benchmark indices closed with substantial losses across the board. The broader market indices also remained under pressure, reflecting widespread weakness in investor sentiment.

Major Drags on Benchmark Performance

Reliance Industries and ICICI Bank emerged as the biggest drags on the benchmarks following their December-quarter results. The market's reaction to these earnings highlighted investor concerns about the performance of these heavyweight stocks.

Wipro stood out as the top Nifty loser, declining 4% after the IT major issued guidance that fell short of market expectations for the March quarter. This development added to the overall negative sentiment in the technology sector.

Sectoral Performance and Market Breadth

The market witnessed broad-based selling with more than 30 Nifty constituents ending in negative territory. This widespread decline underscored the risk-off sentiment that dominated trading sessions. Sectoral performance remained broadly weak, with most indices closing lower except for FMCG and auto stocks, which managed to buck the negative trend.

Market breadth remained heavily skewed towards declines, with the NSE advance-decline ratio standing at 1:3, indicating that for every stock that gained, three stocks declined.

Notable Gainers Despite Market Weakness

Despite the overall negative sentiment, several stocks managed to post gains. InterGlobe Aviation emerged as the top Nifty gainer, rising 4% even after the DGCA imposed a penalty related to December flight disruptions.

Midcap Movements and Sector-Specific Developments

In the midcap segment, JSW Infrastructure surged 6% following its quarterly results, demonstrating that strong earnings could still drive individual stock performance despite broader market weakness. However, MRPL dropped over 5% after announcing a halt in Russian crude imports, reflecting sector-specific challenges.

Punjab National Bank experienced volatility, slipping nearly 6% from intraday highs after its Q3 numbers disappointed market expectations, highlighting the mixed nature of earnings results across the banking sector.