The Nifty traded below the 23,150 mark. Auto, FMCG and financial services shares advanced while oil & gas, media and pharma shares declined.

At 13:28 IST, the barometer index, the S&P BSE Sensex rose 8.16 points or 0.01% to 74,571.08. The Nifty 50 index fell 27.55 points or 0.11% to 23,126.85.

The broader market underperformed the frontline indices. The BSE 150 MidCap Index declined 1.37% and the BSE 250 SmallCap Index fell 1.47%.

Sellers outpaced buyers on the BSE, with 1,122 shares advancing, 3,082 shares declining, and 206 shares unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slipped 2.74% to 22.02.

Economy:

India’s wholesale price index (WPI) inflation accelerated to 2.13% in February 2026 compared with 1.81% in January 2026, marking an 11-month high. Food inflation edged higher to 1.85% during the month from 1.41% in January. Meanwhile, inflation in the fuel and power segment turned positive at 1.17% in February against a contraction of 1.62% in the previous month.

Gainers & Losers:

UltraTech Cement (up 3.34%), Grasim Industries (up 2.09%), Hindalco Industries (up 1.85%), HDFC Bank (up 1.75%) and Mahindra & Mahindra (up 1.47%) were the major Nifty50 gainers.

Bharat Electronics (down 3.70%), Shriram Finance (down 2.36%), Coal India (down 2.15%), Wipro (down 2.09%) and Dr. Reddy's Laboratories (down 1.79%) were the major Nifty50 losers.

Stocks in Spotlight:

Bajel Projects surged 12.83% after the company said it has secured an order worth over Rs 700 crore from Maharashtra State Electricity Transmission Company (MSETCL) for setting up a 400/220 kV AIS substation at Saswad in Pune district along with associated transmission lines.

Omnitech Engineering shed 1.42%. The company reported a 170.73% surge in consolidated net profit to Rs 22.2 crore in Q3 FY26 compared to Rs 8.2 crore posted in the same quarter last year. Revenue jumped by 81.08% YoY to Rs 134 crore in Q3 FY25.

VA Tech Wabag rose 0.46%. The company announced that its joint venture has secured an Asian Development Bank (ADB)-funded 'mega' order from the Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB). The company classifies a 'mega' order as a contract with a value exceeding Rs 1,000 crore.

SEAMEC rose 3% after the company said a consortium comprising SEAMEC and Supreme Hydro Engineering has received a notification of award from Oil and Natural Gas Corporation (ONGC) for operation and maintenance services of the vessel Samudra Sevak.

Global Markets:

European markets opened higher on Monday despite the ongoing unrest in the Middle East and elevated global oil prices.

Asian markets traded lower as investors assessed elevated oil prices and the latest developments in the escalating U.S.-Iran conflict.

U.S. crude prices topped $100 per barrel as the Trump administration weighed military strikes on Tehran’s Kharg Island, a strategically vital hub often referred to as Iran’s “oil lifeline.”

President Donald Trump on Friday reportedly ordered strikes against Iranian military assets on Kharg Island and warned of further attacks on crude facilities located there. Mike Waltz, the U.S. ambassador to the United Nations, repeated the warning Sunday, as per media reports.

According to a global research house, a surge in energy prices stemming from the war in Iran could shave about 0.3% off global GDP over the next year, while pushing headline inflation higher by roughly 0.5% to 0.6%.

Higher natural gas prices are expected to add further inflationary pressure and growth headwinds, particularly in Europe and Asia, with risks skewed toward larger impacts if the Strait of Hormuz remains closed, the research firm has reportedly said.

On the data front, retail sales in China for the first two months of the year rose 2.8% from a year earlier, beating the widely reported forecast for 2.5% growth, but a notable slowdown from the 4% growth in the January-February period in 2025.

Industrial output climbed 6.3%, also exceeding widely reported expectations for a 5% jump. Industrial production has been a relative bright spot in the world’s second-largest economy, thanks to resilient external demand, particularly from European and Southeast Asian nations.

On Wall Street, US stocks closed red on Friday, despite showing some recovery and optimism after the opening bell.

The S&P 500 shed 0.61%, putting it 5% below its recent high and closing at 6,632.19. The Nasdaq Composite declined 0.93% to end at 22,105.36. The Dow Jones Industrial Average shed 119.38 points, or 0.26%, and settled at 46,558.47.

Rising oil prices tied to geopolitical tensions have weighed on market sentiment, keeping investors cautious.

Meanwhile, a federal judge on Friday rejected the Justice Department’s attempt to subpoena Federal Reserve Chair Jerome Powell, delivering a significant legal victory for the central bank.

US District Judge James Boasberg ruled that the subpoenas issued by US Attorney Jeanine Pirro were improper and appeared to be politically motivated.

Mortgage rates climbed to their highest level since September on Friday as bond yields rose amid escalating tensions related to the war in Iran.

According to media reports, the average rate on a 30-year fixed mortgage reached 6.41%. Mortgage rates tend to track movements in the 10-year US Treasury yield, which moved higher again on Friday, contributing to the latest increase in borrowing costs.