Indian stock markets ended the day in negative territory on Tuesday, with the benchmark Sensex and Nifty declining amid sustained selling by foreign institutional investors (FIIs) and soaring crude oil prices.
Market Performance
The 30-share BSE Sensex dropped 250.45 points, or 0.38%, to close at 65,000.12. Similarly, the broader NSE Nifty fell 73.85 points, or 0.38%, to settle at 19,495.75. During the trading session, both indices witnessed volatility, recovering from early losses but failing to sustain gains.
Sectoral Trends
Among sectoral indices, auto, banking, and metal stocks were the top losers, while IT and pharma stocks managed to stay afloat. The BSE Auto index fell 0.8%, and the BSE Bankex declined 0.6%. On the other hand, the BSE IT index gained 0.3%, and the BSE Healthcare index rose 0.2%.
Key Drivers
- FII Selling: Foreign institutional investors continued to offload Indian equities, pulling out over Rs 1,500 crore in the last two sessions.
- Crude Oil Prices: Brent crude futures hovered around $93 per barrel, raising concerns about inflation and input costs for companies.
- Global Cues: Weakness in Asian markets and uncertainty ahead of US Federal Reserve policy minutes also weighed on sentiment.
Top Gainers and Losers
In the Sensex pack, the top losers included Mahindra & Mahindra, Tata Motors, Axis Bank, and ICICI Bank, each falling over 1%. Conversely, HCL Technologies, Sun Pharma, and Infosys were among the gainers, rising up to 0.8%.
Outlook
Analysts expect the market to remain cautious in the near term due to high valuations, persistent FII outflows, and global headwinds. However, positive domestic macroeconomic data and strong corporate earnings may provide support at lower levels.
