Equities Retreat; Bond Yields Extend Decline

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

India Stocks fall

By Dehuti Jani

June 29, 2026 at 12:05 PM IST

Indian equity benchmarks ended lower on Monday, pausing after a three-week rally as concerns over a weak monsoon and profit booking outweighed support from easing geopolitical tensions and lower crude oil prices. The Nifty50 fell 109.75 points or 0.46% to close at 23,946.25, while the BSE Sensex declined 372.10 points or 0.48% to 76,728.37. Market participants said the recent gains driven by lower oil prices and measures to support the rupee had largely been priced in.

Sentiment remained cautious despite progress in US-Iran negotiations and Brent Crude holding near $73 per barrel. Investors also monitored concerns that an uneven monsoon could weigh on rural demand.

Auto and IT stocks led the decline. The Nifty Auto index dropped 2.1% on concerns over rural demand, while the Nifty IT index lost 1.1%, pressured by a sharp fall in Persistent Systems following its acquisition announcement. Among Nifty50 constituents, Mahindra & Mahindra, Adani Enterprises and Tata Motors were the top losers. Broader markets also weakened, with the Nifty MidCap and Nifty SmallCap indices declining 0.37% and 0.62%, respectively. Pharma, healthcare and metal stocks outperformed, while auto, chemicals and oil & gas lagged.

The rupee ended marginally weaker at 94.54 per US dollar as weakness in domestic equities and late dollar demand offset support from stronger Asian currencies. Meanwhile, government bonds extended gains, with the benchmark 6.94% GS 2036 yield easing to 6.7515% from 6.7690%, supported by quarter-end buying and healthy foreign portfolio inflows.

Top Movers of the Day

Zydus Wellness rose 9.13% to ₹565.40 Today, likely helped by strong buying interest and heavy trading volumes, which often lift consumer stocks when sentiment turns defensive.

Schneider Infra advanced 7.24% to ₹1,432.00, and the move looked tied to continued optimism around infrastructure spending and order visibility.

Gabriel India gained 4.13% to ₹1,280.00, with auto-component stocks often seeing support when investors chase manufacturing and EV-linked names.

Power Grid Corporation added 1.09% to ₹287.00 on steady institutional buying in defensive public sector names.

Eternal moved up 1.57% to ₹259.15, with investors still backing its growth story.

Bank of Maharashtra jumped 5.57% to ₹93.65 after stronger recent earnings momentum kept sentiment upbeat.

Chennai Petroleum Corporation rose 4.53% to ₹1,152.10, likely tracking the broader energy move and firmer crude-linked interest.

Kotak Mahindra Bank fell 2.93% to ₹397.00 as banks came under pressure from concerns about margins and near-term earnings sensitivity.

Persistent Systems dropped 11.35% to ₹4,292.00, with the stock reacting sharply after a weak session that likely reflected profit-taking and worries around growth after its recent run.

NetWeb Technologies India slipped 9.34% to ₹4,482.00, and the stock looked hit by a mix of valuation pressure and investor caution after a strong stretch.

Futures & Options
The Nifty June 2026 futures closed at 23,971, a premium of 24.75 points over the spot Nifty 50 close of 23,946.25, indicating a mildly positive undertone despite weakness in the cash market. In the cash market, the Nifty 50 declined 109.75 points or 0.46% as investors booked profits after the recent rally.

Meanwhile, India VIX rose 4.29% to 13.61, reflecting higher near-term volatility expectations. Among stock futures, HDFC Bank, Infosys and Tata Consultancy Services were the most actively traded contracts in the NSE F&O segment. The June 2026 derivatives series will expire on 30 June 2026.

Bonds
India’s government bond benchmark yields declined on Monday as quarter-end buying gathered pace and sustained foreign portfolio inflows supported demand for government securities. The benchmark 6.94% GS 2036 yield fell to 6.7515% from 6.7690% at the previous close.

Demand strengthened towards the end of the quarter as investors added to holdings, while continued FPI purchases under the fully accessible route provided an additional boost. Since the RBI's June 5 policy measures, overseas investors have bought around 390 billion rupees of government securities through the FAR route.

Meanwhile, Brent Crude hovered around $73 per barrel, limiting pressure on bond sentiment. Traders also said the government's buyback of short-term gilts helped ease liquidity concerns, supporting the shorter end of the yield curve.

Forex
Indian rupee traded in a narrow range and ended marginally weaker on Monday as weakness in domestic equities and late dollar demand offset support from firmer Asian currencies following the pause in US-Iran hostilities. The rupee settled at 94.54 per US dollar, down 0.1% from the previous close of 94.3950.

Traders said the decline in the domestic currency was driven by weakness in Indian equities, with the Nifty 50 falling 0.4%, and by a pick-up in dollar demand from foreign banks, likely on behalf of custodial clients, late in the trading session.

Crypto
Crypto markets remained under pressure on Monday as investors continued to grapple with institutional outflows, large whale transactions and lingering macroeconomic uncertainty. Bitcoin traded in the $59,500-$60,500 range, with the $60,000 level emerging as a key support zone after a sharp correction from recent highs. Market participants said sustained trading above this level will be crucial for stabilising sentiment.

Ethereum traded near $1,578, up about 0.4% over the past 24 hours but remained close to its 2026 lows. Continued institutional fund outflows, sizeable whale activity and broader market uncertainty kept volatility elevated and limited any meaningful recovery across the cryptocurrency market.

US Stock Futures
US stock futures edged higher on Monday as investors welcomed a pause in hostilities between the US and Iran, although uncertainty over the durability of the ceasefire and its implications for global oil supplies kept sentiment cautious. Futures linked to the Dow Jones Industrial Average rose 205 points, or 0.4%, while S&P 500 futures gained 0.7%. Nasdaq-100 futures outperformed, climbing 1.1% as technology stocks rebounded in pre-market trading.

Chipmakers led the gains, with Arm Holdings rising 3.5%, Marvell Technology adding 2.2%, Micron Technology advancing 1.6% and Intel gaining 1.2%. SpaceX also rose 1.2% in pre-market trade after Nasdaq said the company would be fast-tracked for inclusion in the Nasdaq-100 index next month.

US Treasury Notes
US Treasury yields were little changed in pre-market trading on Monday as investors adopted a cautious stance ahead of key US economic data and monitored developments in the fragile US-Iran ceasefire. The benchmark 10-year Treasury yield edged up to 4.40%, while the policy-sensitive 2-year Treasury yield rose to 4.10%. The 30-year Treasury yield eased slightly to 4.90%.

Trading remained range bound as investors looked ahead to a busy US economic calendar, including the closely watched nonfarm payrolls report, for fresh clues on the Federal Reserve's policy path. With a shortened trading week ahead of the Independence Day holiday, volumes were subdued as markets assessed whether easing inflation expectations would be sufficient to soften the Fed's hawkish stance.

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