Indian equity benchmarks closed lower for the third consecutive trading session on Tuesday, as weak global cues and investor caution weighed on sentiment.
The BSE Sensex dropped 636.24 points, or 0.78%, to end at 80,737.51, while the NSE Nifty fell 174.10 points, or 0.70%, to settle at 24,542.50.
IT, PSU banks, financial services, FMCG, and energy stocks led the decline. However, midcap and smallcap indices fared better. The Nifty Smallcap 100 inched up 0.10% to 18,114, while the Nifty Midcap 100 shed 0.45% to close at 57,517.
“After an initial uptick, the Nifty oscillated sharply in early trade; however, a sharp decline below the 20-day exponential moving average in the latter half of the session kept the tone negative,” said Ajit Mishra of Religare Broking.
Analysts cited sustained foreign fund outflows, geopolitical tensions, and uncertainty over global trade deals as key factors behind the market’s weakness. They added that strength in select banking stocks may cushion further downside.
Investors also appeared to be in wait-and-watch mode ahead of the Reserve Bank of India’s upcoming interest rate decision.
On the currency front, the rupee gave up Monday’s gains, impacted by risk aversion, a stronger U.S. dollar, and continued outflows. HDFC Securities’ Dilip Parmar expects the USD/INR pair to trade in the 85.10–85.90 range in the near term.
Gold prices remained steady near ₹97,700 on the MCX after a sharp rally on Monday. Analysts said the market is consolidating ahead of key economic data releases from the U.S.
-IANS