Sensex, Nifty Shed 1% Each Amid Broad Sell-Off; Auto Stocks Hit Hard

The Indian stock markets plunged sharply on Tuesday, with the Sensex dropping 872.98 points, or 1.06%, to close at 81,186.44, driven by weak global cues and heavy selling by foreign institutional investors (FIIs), fluctuating between a high of 82,250.42 and a low of 81,153.70.

The Nifty fell 261.55 points, or 1.05 per cent, to settle at 24,683.90.

Rupak De of LKP Securities said the Nifty broke down after two days of consolidation. He pointed to broad-based selling and weak market breadth as key reasons.

Despite the drop, De noted that the short-term trend remains strong. However, he warned of a deeper pullback toward the 21-day EMA on daily charts.

Most Sensex stocks closed in the red. Only Tata Steel, Infosys, and ITC posted gains. Tata Steel rose 0.73 per cent, Infosys gained 0.08 per cent, and ITC edged up 0.07 per cent.

Top losers included Eternal (formerly Zomato), which fell 4.10 per cent. Maruti Suzuki, UltraTech Cement, Power Grid, and Nestle India also ended lower.

The broader markets also witnessed selling pressure. The Nifty Midcap100 fell 1.62 per cent, while the Nifty Smallcap100 slipped 0.94 per cent.

All sectoral indices closed in the red. The Nifty Auto index was the worst performer, losing 2.17 per cent.

The India VIX, or fear index, edged up by 0.12 per cent to 17.39, signalling rising market volatility.

Vinod Nair of Geojit Investments said a lack of positive triggers and concerns over US fiscal stability led to profit-booking.

He added that uncertainty over the India-US trade agreement weighed on sentiment.

“With high valuations and delays in the trade deal, FIIs may reduce their exposure, causing a phase of short-term consolidation,” Nair said.

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