MUMBAI — Indian stock markets closed lower on Tuesday as investors booked profits after a strong recent rally, with sentiment further dampened by reports that U.S. President Donald Trump may consider imposing new tariffs on Indian rice. The development added fresh uncertainty to already strained trade negotiations between India and the United States.
At the close, the Sensex stood at 84,666.28, down 436.41 points, or 0.51 per cent. The Nifty ended at 25,839.65, slipping 120.90 points, or 0.47 per cent.
A broad decline across heavyweight stocks contributed to the market pullback. Asian Paints, Tech Mahindra, HCL Tech, Tata Steel, Maruti Suzuki, Sun Pharma, TCS, ICICI Bank and Bajaj Finance were among the biggest drags, falling as much as 4.6 per cent during the session. A handful of gainers — including Eternal, Titan, Adani Ports, BEL and SBI — offered some limited support to the benchmarks.
Broader markets, however, outperformed. The Nifty MidCap index gained 0.32 per cent, while the Nifty SmallCap index rose 1.14 per cent, signaling continued buying interest in mid- and small-cap stocks.
Most sectoral indices, including Nifty IT, Auto and Pharma, traded under pressure and slipped nearly 1 per cent. PSU Bank, FMCG, Media, Consumer Durables and Chemicals also remained in the red through the day.
Analysts said global trade worries and persistent profit booking weighed on sentiment as investors awaited clarity on potential U.S.–India tariff actions.
“In the near term, central bank commentary, currency movement, and FII flows will steer sentiment, while domestic macro resilience is expected to provide a cushion against downside risks,” market watchers said.
They added that while markets largely expect a 25-bps rate cut by the U.S. Federal Reserve and a rate hike by the Bank of Japan, “forward guidance for 2026 will be critical.”
Meanwhile, the rupee strengthened by 23 paise to 89.82 as short covering emerged following a mild recovery in equities. (Source: IANS)
