At 11:30 IST, the barometer index, the S&P BSE Sensex, fell 399.73 points or 0.55% to 72,964.56. The Nifty 50 index slipped 111.60 points or 0.49% to 22,601.50.

In the broader market, the BSE 150 MidCap Index shed 0.03% and the BSE 250 SmallCap Index declined 0.07%.

The market breadth was positive. On the BSE, 2,426 shares rose and 1,623 shares fell. A total of 208 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rallied 3.51% to 26.42.

RBI MPC update:

The Reserve Bank of India's Monetary Policy Committee (MPC) has begun its first meeting for FY 2026'27, scheduled from April 6 to April 8, with the policy announcement due on the final day.

Economists largely expect the central bank to keep the repo rate unchanged at 5.25%, as inflationary pressures remain a concern. Ongoing geopolitical tensions in West Asia are seen as a key risk to price stability, prompting policymakers to adopt a cautious approach despite earlier rate cuts.

Economy:

India's services sector saw a slight cooling in momentum in March, with the seasonally adjusted HSBC India Services PMI Business Activity Index easing to 57.5 from 58.1 in February. This marks the slowest pace of expansion in 14 months.

Buzzing Index:

The Nifty Pharma index dropped 1.19% to 21,548.50. The index tumbled 4.98% in the five consecutive trading sessions.

Piramal Pharma (down 1.90%), J B Chemicals & Pharmaceuticals (down 1.63%), Sun Pharmaceutical Industries (down 1.59%), Cipla (down 1.59%), Dr Reddys Laboratories (down 1.46%), Divis Laboratories (down 1.22%), Lupin (down 1.10%), Alkem Laboratories (down 1.05%), Ipca Laboratories (down 0.97%) and Biocon (down 0.68%) declined.

Stocks in Spotlight:

IndusInd Bank shed 0.74%. The company reported a 2.6% decline in deposits to Rs 4,00,178 crore as of 31 March 2026, compared with Rs 4,10,862 crore as of 31 March 2025.

Vedanta added 0.56%. The company's aluminium production jumped 2% to 613,000 tonnes in Q4 FY26, compared with 604,000 tonnes posted in Q4 FY25, supported by majorly through operational efficiencies.

Wipro added 1.51% after the company announced that it has secured a multi-year strategic transformation deal with Olam Group.

Global Markets:

Japan and South Korean stocks rose Monday, while most Asian markets were closed for holidays, as investors parsed the latest developments in the Middle East conflict over the weekend.

President Donald Trump on Sunday issued a fresh round of threats to attack Iran's power plants and civilian infrastructure starting Tuesday, if Tehran failed to fully reopen the Strait of Hormuz.

The key oil chokepoint between Iran and the Arabian Peninsula handled about one-fifth of the world's oil supplies before the war between U.S.-Israel and Iran started on Feb. 28.

In an expletive-laden social media post, Trump vowed to bring Hell' to Iran after U.S. forces rescued an American airman in Iran last week.

He later posted about a Tuesday 8 P.M. Eastern Time' deadline without elaborating. The White House on Sunday told MS NOW that the date is the new deadline for Iran to reach a deal with the U.S.

Trump said he will hold a press conference with the Military' at the Oval Office at 1 p.m. on Monday.

Iran has pushed back against Trump's ultimatum to reopen the Strait of Hormuz, saying that the critical waterway would only reopen fully after damage from the war is compensated. Tehran has continued strikes on economic and infrastructure targets in the neighboring Gulf region, including Kuwait's oil headquarters.

Eight members of the Organization of the Petroleum Exporting Countries and allies raised their production quotas on Sunday by 206,000 barrels per day for May, though the move appeared largely symbolic as the war has constrained shipments from several members.

On Thursday, the Dow Jones Industrial Average slipped in volatile trading as oil prices surged following President Donald Trump's remarks that the Iran war would continue for weeks.