Indian equity markets closed lower on Tuesday as investors booked profits after Monday’s strong rally, while concerns over ongoing US-China trade negotiations and geopolitical tensions weighed on sentiment.
The BSE Sensex dropped 1,281.68 points or 1.5 per cent, ending the session at 81,148.22. Meanwhile, the Nifty 50 declined 346.35 points or 1.39 per cent to finish at 24,578.35.
The pullback followed a remarkable rally the previous day, where both indices surged nearly 4 per cent marking their best performance in over four years after fears of conflict between India and Pakistan subsided.
Despite Monday’s gains, analysts viewed the rally as being largely driven by short covering.
With uncertainties still in play, investors chose to lock in gains rather than extend positions.
Also Read: Sensex & Nifty Open Lower Due To Weak Performances By Infosys & Zomato
“Markets took a natural breather after such a sharp upmove,” said Ajit Mishra of Religare Broking Ltd.
“The dip reflects caution despite relatively stable global cues and easing geopolitical risks.”
Interestingly, while headline indices declined, the broader markets managed to remain resilient.
The BSE Midcap index inched up 0.17 per cent, and the BSE Smallcap index climbed 0.99 per cent, suggesting continued investor interest in mid- and small-sized stocks.
Most sectoral indices ended in the red. Among the worst-hit were:
Each of these sectors fell by over 1 per cent.
Other key indices—including Nifty Bank, Metal, Oil & Gas, Realty, and Consumer Durables—also recorded declines of up to 1 per cent.
On the other hand, a few sectors showed relative strength. Nifty PSU Bank, Media, Pharma, and Healthcare indices posted modest gains, rising up to 1.66 per cent.
Among Sensex constituents:
Meanwhile, Sun Pharma, Adani Ports, Bajaj Finance, SBI, and Tech Mahindra posted gains of up to 1 per cent.
The India VIX, a measure of market volatility, eased by 1.05 per cent to 18.20, indicating slightly reduced nervousness among traders.
Sundar Kewat of Ashika Institutional Equity noted, “Geopolitical tensions, particularly the fragile ceasefire between India and Pakistan, kept markets jittery despite the absence of immediate threats.”
Ajit Mishra added that while caution is likely to persist in the short term, broader sentiment remains constructive.
“We expect a positive tone to prevail, particularly if the index holds above the 24,400–24,600 range. Investors should use such pauses to accumulate quality stocks within relatively strong sectors.”
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