Mumbai— Indian stock markets closed lower for a third consecutive session on Tuesday, weighed down by persistent global uncertainty and foreign fund outflows.
The benchmark Sensex dropped 636.24 points, or 0.78%, to end at 80,737.51, while the Nifty slipped 174.10 points, or 0.70%, to settle at 24,542.50.
Sector-wise, the biggest drags were IT, public sector banks, financial services, FMCG, and energy stocks. However, midcap and smallcap indices showed relative resilience. The Nifty Smallcap 100 rose by 18.60 points (0.10%) to 18,114, while the Nifty Midcap 100 declined by 258.45 points (0.45%) to 57,517.
Markets were volatile throughout the session. After a brief morning uptick, the Nifty reversed sharply, slipping below its short-term 20-day exponential moving average, signaling continued bearish sentiment.
“After an initial rebound, the Nifty saw sharp swings, eventually declining below the 20-DEMA, which kept the tone negative,” said Ajit Mishra, SVP – Research at Religare Broking Ltd.
Analysts attributed the decline to a mix of weak global cues, ongoing geopolitical tensions, and uncertainties around international trade. Continued foreign institutional selling also added pressure.
Still, some experts noted that relative strength in the banking sector could provide a cushion and potentially slow the pace of losses.
Investors are also awaiting clearer guidance from the Reserve Bank of India, which is set to announce its interest rate decision later this week.
Meanwhile, the Indian rupee gave up gains made on Monday, weighed down by a stronger U.S. dollar, risk-off sentiment, and capital outflows. According to Dilip Parmar of HDFC Securities, the USD/INR spot rate is likely to remain in the 85.10–85.90 range in the near term.
Gold prices held steady around Rs 97,700 per 10 grams after a sharp rally of nearly Rs 2,000 on Monday, briefly crossing Rs 98,000 on the MCX. Analysts expect the precious metal to remain range-bound ahead of key U.S. economic data releases. (Source: IANS)
