Indian equity markets closed lower on Tuesday as investors remained cautious ahead of crucial inflation data releases from both domestic and US sources amid ongoing tariff tensions.
The BSE Sensex ended at 80,235.59, down 368.49 points or 0.46%, after opening in negative territory at 80,508.51. The NSE Nifty 50 index settled at 24,487.40, down 97.65 points or 0.40%. Both indices experienced volatility throughout the trading session as market participants awaited inflation data expected to influence global monetary policies.
Among Sensex constituents, Bajaj Finance, Trent, Hindustan Unilever, HDFC Bank, Bajaj FinServ, ICICI Bank, Kotak Mahindra Bank, and Reliance were notable laggards. On the upside, Maruti Suzuki, Tech Mahindra, Mahindra & Mahindra, NTPC, Sun Pharma, Tata Steel, and Titan closed with gains.
Sectoral performance was mixed with pressure seen in financial services, banking, and FMCG. The Nifty Financial Services index dropped 270 points (1.02%), Nifty Bank fell 467.05 points (0.84%), and FMCG declined by 275 points (0.50%). Meanwhile, Nifty IT and Nifty Auto indices closed in positive territory.
Broader market indices showed mixed reactions: Nifty Next 50 and Nifty Smallcap 100 remained flat, while Nifty Midcap 100 slipped 154 points (0.27%). Nifty 100 ended 86 points (0.34%) lower.
Global trade tariff developments, including the extension of the US-China tariff truce, contributed to the cautious sentiment. The upcoming US inflation figures could have a significant impact on the US Federal Reserve’s monetary policy stance, while domestic inflation is expected to stay below the Reserve Bank of India’s target range.
“The US inflation data, especially any tariff-related impacts, will be critical for Fed policy. Domestically, inflation remains subdued. Healthcare and automobile sectors showed strength, while financials and real estate faced selling pressure. Stock-specific moves are likely to continue as investors focus on consumption-driven sectors to navigate volatility,” said Vinod Nair, Head of Research at Geojit Investments Limited.
The Indian rupee remained steady near 87.70 against the US dollar, while the dollar index traded around 98.30 with a slight upward bias. Firm crude oil prices exerted pressure on the rupee, with traders closely watching the upcoming US Consumer Price Index (CPI) data for fresh market cues.
— IANS