Tuesday’s session underscored a cautious phase for Indian equities, with sectoral rotation and profit-booking dictating sentiment amid uncertain global conditions.
BIZ DESK
Domestic equity markets closed in the red on Tuesday, reversing early gains as renewed selling pressure hit information technology (IT) and metal stocks in the second half of the trading session. The cautious mood among investors, influenced by weak global cues and profit-booking in select heavyweights, led to a broad-based decline across key indices.
Market Overview
After a firm start, the Sensex surrendered its early gains to close 519.34 points (0.62%) lower at 83,459.15, while the Nifty 50 dropped 165.70 points (0.64%) to settle at 25,597.65. During intraday trade, the Sensex briefly rose 0.11% before turning negative. Market analysts noted that the Nifty continued its pattern of lower highs and lower lows, reflecting persistent short-term weakness.
“The momentum indicators have signaled a sell crossover on daily charts, implying that pressure could continue in the near term,” analysts said. “Support is seen around the 25,570–25,500 zone, while a breakout above 25,800 could trigger a fresh upside.”
Sector-wise Performance
Information Technology (IT)
The Nifty IT index slipped 0.06%, with investors booking profits after a mild recovery seen in the previous sessions. Persistent concerns over global demand, especially from the U.S. and European clients, weighed on frontline software exporters such as Infosys and Wipro.
Metals
The Nifty Metal index was the worst performer, dropping 1.44%. Global commodity weakness and fears of a slowdown in Chinese industrial activity dragged down major players like Tata Steel and JSW Steel, both of which closed sharply lower.
Auto and Power
Auto stocks also came under pressure, with the Nifty Auto index losing 0.86%. Shares of Tata Motors Passenger Vehicles, Maruti Suzuki, and Mahindra & Mahindra saw mixed trends as investors remained cautious ahead of festive sales data. The Power sector, represented by Power Grid Corporation, witnessed profit-booking, contributing to overall market weakness.
Consumer Durables
In contrast, Nifty Consumer Durables was the lone gainer, rising 0.39%, supported by demand optimism and strong quarterly updates from leading players like Titan and Voltas.
Stock Highlights
Among individual Sensex stocks, Power Grid, Tata Motors, Tata Steel, Maruti Suzuki, and Eternal were among the top losers. On the gainers’ side, Titan, Bharti Airtel, Bajaj Finance, Mahindra & Mahindra, and State Bank of India (SBI) managed to post modest advances.
Broader Market Trend
The broader indices mirrored the benchmark’s weakness. The Nifty Midcap 100 index declined 0.42%, while the Nifty SmallCap 100 dropped 0.82%, indicating risk aversion among retail investors.
Market Outlook
Analysts expect volatility to persist in the coming sessions amid a holiday-shortened trading week and muted global cues. “The market is likely to remain range-bound as investors await fresh triggers. Global developments, crude price movements, and foreign fund inflows will be key factors to watch,” said market experts.