Indian equity benchmarks extended their losing streak on Tuesday, with investors engaging in profit booking amid subdued sentiment and lingering global uncertainties.
The Sensex closed at 85,063.34, down 376.27 points or 0.44 per cent, while the Nifty ended 74.70 points lower, or 0.28 per cent, at 26,175.60.
Sectorally, Nifty Media, Oil & Gas and Chemicals were the worst performers, according to data from the National Stock Exchange. In contrast, Pharma, IT and PSU banking stocks provided limited support to the broader market.
Vinod Nair, Head of Research at Geojit Investments Limited, said the correction was largely driven by selling pressure in large-cap stocks.
“The market reaction was influenced by uncertainties surrounding the Venezuela–US crisis and Russian oil imports, along with anticipation ahead of Q3 earnings,” Nair said. “While most sectors witnessed profit booking, Pharma, Banking and IT stocks showed relative resilience.”
He added that banking stocks drew support from positive pre-quarter business updates, while pharma stocks gained on the back of steady growth reported by the Indian Pharmaceutical Market for December.
In the near term, Nair said markets are expected to remain range-bound amid mixed optimism around US–India trade deal uncertainty and elevated expectations from Q3 earnings.
Ponmudi R, CEO of Enrich Money, said the risk-off mood was reinforced by rising geopolitical tensions and renewed tariff-related concerns, leading to profit-taking at higher levels and capping broader market momentum.
Echoing similar views, Shrikant Chouhan, Head of Equity Research at Kotak Securities, said the decline reflected continued selling pressure at elevated levels.
“After an early intraday rally, the market witnessed profit booking once again. Pharma and healthcare indices outperformed, rising over 1.5 per cent, while the Oil and Gas index declined the most, losing around 1.8 per cent,” Chouhan said.
Both Sensex and Nifty posted cumulative gains of around 8–10 per cent in 2025, lower than recent annual averages. Market participants remained cautious amid low foreign investor participation, with foreign portfolio investors remaining net sellers through the year.
Indian equities have remained largely range-bound in recent months, barring intermittent rallies, as investors continue to assess trade-related uncertainties following the United States’ imposition of a 50 per cent tariff on Indian goods.
For context, the benchmark indices gained around 9–10 per cent each in 2024, rose 16–17 per cent in 2023, and recorded modest gains of about 3 per cent in 2022.
-ANI
