Indian Markets End Lower As Profit Booking & FII Selling Weigh On Sentiment

The Indian stock market closed lower on Tuesday as investors booked profits and foreign institutional investors continued to pull out funds ahead of the crucial RBI policy meeting this week. The broader sentiment remained cautious as concerns over a weakening rupee and regulatory adjustments in sectoral indices added pressure across sectors.

The Sensex ended at 85,138.27, slipping 503.63 points (0.59%) after opening weak at 85,325.51. The index extended losses through the session, dragged by selling in banking, IT, capital goods and other major heavyweights, and touched an intra-day low of 85,053.0.

The Nifty also mirrored the weakness, closing at 26,032.20, down 143.55 points (0.55%).

Market analysts noted that persistent FII outflows and subdued global cues kept investors wary.

They added that NSE’s sectoral index realignment as per SEBI norms triggered corrections in major banking stocks, further deepening market weakness.

Indices Turn Lower

In the short term, analysts believe that fading hopes of an immediate RBI rate cut, owing to stronger-than-expected GDP data, may keep markets on edge. Additionally, uncertainty surrounding ongoing US-India trade discussions continues to weigh on investor confidence.

Within the Sensex pack, major laggards included ICICI Bank, Axis Bank, HDFC Bank, BEL, L&T, PowerGrid, Bajaj FinServ, Mahindra & Mahindra, ITC, Tata Motors PV, and HCL Tech, all of which ended in the red.

However, selective buying lifted Asian Paints, Bharti Airtel, Maruti Suzuki, Bajaj Finance, and Hindustan Unilever, which managed to close higher.

Sectorally, the trend was largely negative. Nifty Financial Services fell 249 points, Nifty Bank slipped 407 points, Nifty Auto dipped 13 points, and Nifty FMCG fell 109 points. Private banks and the financial services sectors led the decline.

In contrast, the PSU Bank index bucked the trend, rising 0.5% and securing gains for a second straight session.

Rate-sensitive sectors such as Auto, Realty and Consumer Durables witnessed profit booking, reflecting caution ahead of the monetary policy announcement.

Despite the subdued sentiment, November’s auto wholesale numbers exceeded expectations, supported by post-festive demand and smoother inventory levels.

Broader indices also weakened. Nifty Smallcap 100 fell 98 points, Nifty Midcap 100 lost 132 points, while Nifty 100 slipped 126 points, reflecting widespread selling across market segments.

The near-term outlook remains cautious as markets await the RBI’s policy stance and track global developments that may influence capital flows and currency movement.

Also Read: Profit Booking Triggers Early Dip; Sensex & Nifty Regain Ground