Benchmark indices ended Tuesday’s session in the red as investors turned cautious ahead of the U.S. Federal Reserve’s interest rate decision and escalating geopolitical tensions in the Middle East. The Nifty50 slipped 93 points to settle at 24,853, while the Sensex declined over 212 points to close at 81,583. Weak market breadth and broad-based selling, particularly in pharma, auto, and energy stocks, dragged the indices lower. Only 11 Nifty stocks ended in the green, with Tech Mahindra topping the chart.
IT sector bucks the trend
The Nifty IT index stood out as the sole gainer, supported by strength in stocks like Tech Mahindra, Infosys, TCS, and HCL Tech. In contrast, selling was seen across most sectors with pharma, oil & gas, metal, realty, and PSU Bank indices declining between 0.5 and 2 per cent.
Top Nifty movers
Among the laggards on the Nifty 50 were Adani Enterprises, Dr Reddy’s Labs, Sun Pharma, Tata Motors, and Eternal. On the flip side, Tech Mahindra, Infosys, Asian Paints, TCS, and Maruti Suzuki offered some support to the index.
Broader market underperforms
Mid and smallcap segments also faced heat, with both BSE Midcap and Smallcap indices falling around 0.5 per cent each, indicating profit-booking across the board.
Overall, markets struggled to find direction amid weak global cues and cautious investor sentiment, with IT being the lone bright spot.
Technical Analysis
“The rupee traded weak as rising risk sentiment from escalating Israel-Iran tensions weighed on the currency. Weakness in capital markets signalled potential FII outflows, adding to rupee pressure. Additionally, crude oil prices rose amid concerns that tensions near the Strait of Hormuz may disrupt supply, further dampening rupee sentiment. The trading range for the rupee is expected to be between 85.75 and 86.55,” said Jateen Trivedi, VP-Commodity and Currency Research at LKP Securities.
