India’s BSE Sensex declined about 0.5% to 76,898 on Monday, erasing the previous session’s gains as rising crude prices, intensifying tensions in the Middle East, and caution ahead of the MSCI index reshuffle weighed on investor sentiment. Brent crude advanced toward $90 a barrel following the latest escalation between the US and Iran, stoking concerns for oil-import-dependent India.
The MSCI reshuffle, effective September 1, will see Laurus Labs, Lenskart, Adani Energy Solutions, and Groww added to the index, while Balkrishna Industries, SBI Cards, and Astral will be removed. Within the existing constituents, the weight of Reliance Industries will be reduced, whereas that of Adani Enterprises will increase.
Technology stocks were among the main drags on the market, with the IT index declining as shares of Infosys, Persistent Systems, and Mastek fell between 2.2% and 3%. Other notable losers included Reliance Industries (-1.2%), Tempsens Instruments (-3.4%), and Netweb Technologies (-2.7%).
In contrast, HDFC Bank gained about 1.9% after CEO Sashidhar Jagdishan announced he would not seek a third term when his current tenure ends in October. Brokerage firm Bernstein viewed the impending leadership transition positively, suggesting it offers the lender an opportunity to recalibrate its strategic direction.
