Indian stocks closed with a slight decline on Monday, primarily due to escalating geopolitical tensions in the Middle East, which mitigated the influence of anticipated Federal Reserve interest rate cuts later this month. Providing some support against steeper losses, China’s leaders have committed to easing monetary policy and offering additional support to their slowing economy.
In terms of global politics, anti-government rebels declared complete control over Homs—Syria's third major city—and the capital, Damascus, following the departure of Syrian President Bashar al-Assad. This marks the end of a fifty-year regime. It has been reported by Russian media that the deposed President has been granted asylum in Moscow for humanitarian reasons.
Attention is also turning towards the U.S. consumer price index (CPI) data, scheduled for release later this week. This data could significantly impact interest rate expectations and affect foreign investments in emerging markets like India.
The S&P BSE Sensex, a key benchmark index, declined by 200.66 points or 0.25 percent, closing at 81,508.46. This drop extends a two-day losing trend. Similarly, the broader NSE Nifty index concluded trading at 24,619, down 58.80 points or 0.24 percent from the previous session.
Losses were led by the FMCG segment, with Nestle India, Hindustan Unilever, and Tata Consumer Products experiencing declines of 2 to 4 percent. This follows a warning from Godrej Consumer Products about challenging demand conditions and external pressures adversely impacting key business areas, which saw its shares tumble by nearly 9 percent.
Other notable movements included Tata Motors and Asian Paints, both falling by approximately 2 percent, while Larsen & Toubro surged by 2.3 percent and Wipro gained 2.7 percent.
