Sensex and Nifty have recovered from the day’s low but continued their trade in red in late afternoon session amid value buying in IT stocks. However, traders remained cautious amid report that US President Donald Trump announced any country doing business with Iran will have to pay a 25 per cent tariff on its trade with Washington. Investors worry that the move could Tehran’s major trading partners such as India, China and the UAE. Further, persistent selling by foreign institutional investors (FIIs) has made market participants nervous. The FIIs were the net seller on Monday’s trade, offloading equities worth Rs 3,638.40 crore.

On the global front, Asian markets were trading mostly in green tracking broadly positive cues from Wall Street overnight. European markets were trading mostly in green as earnings optimism, tech sector strength and expectations of a favourable economic scenario boost sentiment.

The BSE Sensex is currently trading at 83351.24, down by 526.93 points or 0.63% after trading in a range of 83262.79 and 84258.03. There were 6 stocks advancing against 24 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index declined 0.66%, while Small cap index was up by 0.05%.

The lone gaining sectoral index on the BSE was IT up by 0.08%, while Industrials down by 1.73%, Telecom down by 1.53%, Realty down by 1.31%, Capital Goods down by 1.31% and Consumer Durables down by 0.95% were the losing indices on BSE.

The top gainers on the Sensex were Eternal up by 2.28%, Tech Mahindra up by 1.86%, ICICI Bank up by 1.49%, SBI up by 1.13% and TCS up by 0.60%. On the flip side, Larsen & Toubro down by 4.29%, Trent down by 3.86%, Interglobe Aviation down by 2.34%, Reliance Industries down by 2.24% and Bharat Electronics down by 1.70% were the top losers.

Meanwhile, Society of Indian Automobile Manufacturers (SIAM) has said that passenger vehicle (PV) dispatches from companies to dealers increased 27 per cent year-on-year in December 2025, as demand remained robust for utility vehicles. Total passenger vehicle sales stood at 3,99,216 units in December, up 26.8 per cent as compared with 3,14,934 units in the year-ago period.

It said two-wheeler sales witnessed a 39 per cent on-year rise to 15,41,036 units in December, as compared to 11,05,565 units in the year-ago period. Total three-wheeler sales stood at 61,924 units in December, up 17 per cent against 52,733 units in December 2024. 

On sales outlook, the industry boy stated that the industry enters Q4 of FY26 with firm momentum after strong double-digit growth across all vehicle segments in late 2025, and expects steady wholesale and retail volumes traction through the quarter. The year-end sales push, healthy pipeline of bookings, and the full transmission of 2025 interest rate cuts on loans are expected to support demand, pointing to continued growth into 2025-26, underpinned by stable macroeconomic conditions and supportive policy reforms of the Government of India. It said while remaining watchful of geopolitical developments, the industry expects FY26 to close on a positive growth trajectory, with policy-led tailwinds firmly in place, sustaining the robust performance witnessed in recent years.

The CNX Nifty is currently trading at 25640.25, down by 150.00 points or 0.58% after trading in a range of 25603.30 and 25899.80. There were 13 stocks advancing against 37 stocks declining on the index.

The top gainers on Nifty were ONGC up by 2.88%, Eternal up by 2.33%, Tech Mahindra up by 1.89%, ICICI Bank up by 1.50% and Hindalco up by 1.26%. On the flip side, Larsen & Toubro down by 4.31%, Trent down by 3.79%, Reliance Industries down by 2.28%, Dr. Reddy's Laboratories down by 2.24% and Interglobe Aviation down by 2.19% were the top losers.

Asian equity markets were trading mostly in green; Nikkei 225 surged 1702.11 points or 3.17% to 53,642.00, Taiwan Weighted added 139.93 points or 0.46% to 30,707.22, Hang Seng advanced 205.52 points or 0.77% to 26,814.00, KOSPI increased 67.85 points or 1.45% to 4,692.64 and Straits Times rose 34.81 points or 0.72% to 4,801.59, while Shanghai Composite weakened 26.53 points or 0.64% to 4,138.76 and Jakarta Composite plunged 14.83 points or 0.17% to 8,869.89.

European equity markets were trading mostly in green; UK’s FTSE 100 increased 2.42 points or 0.02% to 10,143.12 and Germany’s DAX gained 59.36 points or 0.23% to 25,464.70, while France’s CAC fell 22.76 points or 0.27% to 8,336.00.