Benchmark equity indices closed lower on Tuesday, as volatility gripped the markets due to rising geopolitical tensions in West Asia. Despite selective buying in auto and private banking stocks, investor sentiment remained cautious amid the escalating conflict between Israel and Iran and ahead of the U.S. Federal Reserve’s policy announcement.
The BSE Sensex closed 138.64 points, or 0.17%, lower at 81,444.66 after falling to an intraday low of 81,237. The NSE Nifty declined by 41.35 points to settle at 24,812.05, also down by 0.17%.
Broader indices mirrored the trend, with the Nifty Midcap100 losing 0.46% and the Nifty Smallcap100 slipping 0.23%. Sectorally, Nifty Media led the losses, falling 1.27%, followed by declines in IT, metal, oil and gas, realty, energy, PSU banking, and FMCG sectors.
However, gains in consumer durables, automobiles, and banking shares provided some support to the indices. IndusInd Bank, Titan, Mahindra & Mahindra, Maruti Suzuki, Asian Paints, and Bharti Airtel emerged as the top gainers on the Sensex, advancing up to 4.4%.
On the other hand, TCS, Hindustan Unilever, Nestle India, Bajaj Finserv, and NTPC were among the major laggards, falling by as much as 1.79%.
Vinod Nair, Head of Research at Geojit Financial Services, said that despite short-term volatility, the long-term domestic outlook remains stable, supported by strong macroeconomic fundamentals. “Investors are likely to focus on quality large-cap stocks until there is more clarity,” he said.
Market participants are closely tracking the U.S. Federal Reserve’s policy decision due later in the day. The prospect of persistent inflation, especially in light of global supply shocks and rising crude oil prices, may prompt the Fed to maintain its current interest rate stance. Analysts are also awaiting commentary from Fed Chair Jerome Powell on the future trajectory of rates and the broader economic outlook.
Meanwhile, the India VIX, a measure of market volatility, edged down 0.89% to 14.27, reflecting relatively subdued risk perception despite global uncertainties.
-IANS