Closing Bell: Sensex Falls 372 Points as US-Iran Ceasefire Cracks, Crude Rises and Profit Booking Sets In

29 Jun 2026 , 05:16 PM

The Indian benchmark indices ended lower on June 29, 2026, with Nifty slipping to 23,946 and Sensex declining 372 points to close at 76,728, as renewed military exchanges between the US and Iran raised fresh doubts over the fragile ceasefire and pushed crude oil prices higher. Profit booking near recent highs added to the pressure, with Auto, Cement, and IT stocks leading the decline. Pharma stood out as the major gainer, with Dr. Reddy’s and other pharma names attracting strong buying on growing biosimilar and export optimism, while caution ahead of US jobs data and a weak monsoon outlook kept overall sentiment subdued.

Market Overview: Nifty, Sensex, and Bank Nifty Performance

• Nifty 50 closed at 23,946.25 down 109.75 points (0.46%)
• Sensex ended at 76,728.37, down 372.10 points (0.48%)
• Nifty Bank settled at 57,727.35, down 449.70 points (0.77%)

 

Top Gaining Stocks Today

1. Max Healthcare Institute Limited – closing at 1,150.00 up by 2.37%

2. Coal India Limited – closing at 442.90 up by 1.72%

3. Eternal Limited – closing at 259.15 up by 1.57%

4. Bharat Electronics Limited – closing at 413.50 up by 1.55%

Top Losing Stocks Today

1. Mahindra & Mahindra Limited – closing at 3,105.00 down by 2.43%

2. Adani Enterprises Limited – closing at 2,970.00 down by 2.24%

3. Tata Motors Passenger Vehicles Limited – closing at 345.80 down by 2.10%

4. Inter Globe Aviation Limited – closing at 5,337.30 down by 2.07%

 

Stocks in News 

1. Dr. Reddy’s Laboratories Limited –

• Closed at ₹1,381.00, up 2.26%

⮚ USFDA Observations Viewed as Manageable: Investors remained optimistic after the USFDA issued seven Form 483 observations following an inspection of the Bachupally biologics facility, as the observations were viewed as routine and not a final regulatory action.

⮚ Brokerage Confidence Boosted Sentiment: Nomura reiterated its ‘Buy’ rating with a target price of ₹1,740, stating that the latest observations are manageable and unlikely to affect the company’s long-term biologics growth plans.

⮚ Biologics Expansion Strategy Remained Intact: The Bachupally facility remains a key part of Dr. Reddy’s biologics pipeline, supporting future products such as biosimilar Abatacept and reinforcing long-term growth prospects.

⮚ Management Confident of Timely Resolution: The company expressed confidence in addressing all USFDA observations within the stipulated timeline and remains optimistic about future regulatory approvals and planned biologics launches, strengthening investor confidence. Read more about this in detail.

2. Kotak Mahindra Bank Limited –

• Closed at ₹397.00, down 2.93%

⮚ CEO’s Decision Not to Seek Second Term Weighed on Sentiment: Shares declined after CEO Ashok Vaswani announced that he will step down at the end of his current term on 31 December 2026, creating uncertainty around the bank’s leadership transition.

⮚ Management Succession Concerns Triggered Profit Booking: Investors turned cautious as the bank initiated the process to appoint a new Managing Director and CEO, with the leadership transition expected to remain an overhang in the near term.

⮚ Strong Business Fundamentals Supported Confidence: The brokerage highlighted that Kotak Mahindra Bank remains well-positioned with healthy business growth, strong asset quality, and a robust banking franchise despite the management change.

⮚ Leadership Uncertainty Overshadowed Valuation Comfort: While valuations are considered attractive after the stock’s recent underperformance, investors remained focused on the outcome of the CEO succession process, leading to short-term selling pressure.

 

Sectoral Performance Index

Indices	Change
Nifty Auto	-2.08%
Nifty Cement	-1.42%
Nifty Media	-1.32%
Nifty Chemical	-1.30%
Nifty Oil & Gas	-1.18%
Nifty IT	-1.07%
Nifty Private Bank	-0.96%
Nifty PSU Bank	-0.95%
Nifty Realty	-0.90%
Nifty Consumer Durables	-0.86%
Nifty Pharma	1.03%
Nifty Metal	0.80%

 

Sectoral Performance & Key Reasons

Pharma (+1.03%) emerged as the top-performing sector as investors continued to accumulate pharmaceutical stocks on expectations of strong long-term growth. Optimism was driven by expanding opportunities in GLP-1 drugs, increasing biosimilar demand following global patent expiries, healthy export enquiries from Africa, West Asia, and Latin America, and reports that the USFDA has approached Indian manufacturers to help address drug shortages. Strong manufacturing capabilities, rising pharmaceutical exports, and India’s growing role as a global medicine supplier further supported buying across stocks such as Dr. Reddy’s Laboratories, Cipla, Lupin, Sun Pharma, Glenmark, and Torrent Pharmaceuticals.

Auto (-2.08%) emerged as the worst-performing sector as investors booked profits after the recent rally in automobile stocks despite lower crude oil prices.

Cement (-1.42%), Media (-1.32%), and Chemicals (-1.30%) also witnessed broad-based selling amid cautious market sentiment.

Oil & Gas (-1.18%) declined as rising crude oil prices renewed concerns over input costs and inflation, while IT (-1.07%) remained under pressure due to weak global technology sentiment and uncertainty over enterprise spending.

Private Banks (-0.96%), PSU Banks (-0.95%), Realty (-0.90%), and Consumer Durables (-0.86%) also traded lower as investors adopted a risk-off approach amid geopolitical tensions, rising oil prices, and profit booking across interest-rate-sensitive sectors.

 

Main Reasons for Stock Market Down Today

1. US-Iran Ceasefire Uncertainty Weighed on Investor Sentiment
   Markets remained under pressure as renewed military exchanges between the US and Iran raised concerns over the stability of the interim ceasefire. The fragile geopolitical situation increased fears of fresh disruptions to global energy supplies and shipping through the Strait of Hormuz, prompting investors to reduce risk exposure.
2. Rising Crude Oil Prices Increased Inflation Concerns
   Brent crude oil moved higher after tensions in the Middle East escalated, raising concerns over higher fuel costs and supply disruptions. Rising crude prices are negative for India as they increase the import bill, fuel inflationary pressures, weaken the current account balance, and weigh on corporate profitability.
3. Profit Booking Near Record Market Levels
   Investors booked profits after the recent market rally as benchmark indices approached key psychological levels. The absence of strong near-term domestic triggers and uncertainty surrounding the sustainability of the US-Iran peace process encouraged traders to lock in gains across sectors.
4. Concerns Over Fed Policy, Weak Monsoon and Q1 Earnings Outlook
   Investor sentiment remained cautious ahead of the upcoming US non-farm payrolls data, which could influence the Federal Reserve’s interest rate path. At the same time, concerns over a deficient monsoon, persistent inflationary pressures, and subdued expectations for the Q1 FY27 earnings season added to the cautious mood, resulting in selling across Auto, IT, and PSU Bank stocks.

Summary-

The Indian stock market ended lower as geopolitical uncertainty, higher crude oil prices, and profit booking weighed on investor sentiment, while Pharma remained the only major sector in the green.

• Auto, Cement, Media, Chemical, Oil & Gas, IT, Banking, Realty, and Consumer Durables stocks traded lower as investors turned cautious amid US-Iran ceasefire uncertainty, rising oil prices, and weak near-term sentiment.

• Pharma stocks outperformed on strong long-term growth expectations, supported by GLP-1 opportunities, biosimilar demand, healthy export enquiries, and positive USFDA-related developments for Indian manufacturers.

With Nifty 50 falling 109.75 points (-0.46%) to 23,946.25, Sensex declining 372.10 points (-0.48%) to 76,728.37, and Nifty Bank slipping 449.70 points (-0.77%) to 57,727.35, market sentiment remained weak due to renewed US-Iran ceasefire concerns, rising crude oil prices, profit booking near record levels, and caution ahead of key US labour data, weak monsoon outlook, and the Q1 FY27 earnings season.

Disclaimer – The stock/s and indices mentioned in this article is discussed solely for informational and educational purposes. It should not be construed as investment advice or a recommendation to buy or sell any securities. Investors should conduct their own research or consult a financial advisor before making any investment decisions. Investments in securities market are subject to market risks. Read all the related documents carefully before investing.