Mumbai– Indian equity markets extended their losing streak for a third consecutive session on Tuesday, weighed down by weak global cues and continued foreign fund outflows. The Sensex dropped 636.24 points, or 0.78%, to close at 80,737.51, while the Nifty fell 174.10 points, or 0.70%, settling at 24,542.50.
Key sectors including IT, PSU banks, financial services, FMCG, and energy led the declines. Despite the overall market weakness, midcap and smallcap indices fared better. The Nifty Smallcap 100 edged up 18.60 points (0.10%) to 18,114, while the Nifty Midcap 100 slipped 258.45 points (0.45%) to end at 57,517.
The session was marked by volatility, with markets initially rising before turning sharply lower.
“After a positive start, the Nifty faced sharp fluctuations and eventually declined below its short-term 20-day exponential moving average (20 DEMA), keeping the tone negative for the day,” said Ajit Mishra, SVP – Technical Research at Religare Broking Ltd.
Analysts attributed the market pressure to a mix of global uncertainty—ranging from geopolitical tensions to concerns over international trade—and continued selling by foreign institutional investors.
While broader sentiment remained cautious, analysts noted that relative strength in the banking sector could help moderate the pace of declines going forward.
Investors are also adopting a wait-and-watch approach ahead of the Reserve Bank of India’s upcoming interest rate decision later this week, which could provide further direction to the markets.
Meanwhile, the Indian rupee lost ground after Monday’s gains, weighed down by risk-averse sentiment, a strengthening U.S. dollar, and persistent capital outflows. According to Dilip Parmar of HDFC Securities, the USD/INR pair is expected to trade between 85.10 and 85.90 in the near term.
In commodities, gold prices remained largely steady around ₹97,700 per 10 grams on the MCX, consolidating after Monday’s sharp ₹2,000 rally that briefly pushed prices to ₹98,000. Experts said traders are awaiting key U.S. economic data before taking fresh positions. (Source: IANS)
