Indian equity benchmarks suffered sharp losses on Tuesday, extending their decline for a second consecutive session. Persistent selling pressure from investors, coupled with lacklustre global market trends, dragged key indices significantly lower.
Key Indices Witness Steep Declines
The 30-share BSE Sensex plummeted by 732.96 points or 0.99 per cent to settle at 73,502.64. During the trading session, it hit a low of 73,476.72. Similarly, the broader NSE Nifty dropped 172.35 points or 0.76 per cent to close at 22,332.65.
From the Sensex basket, several major companies faced heavy selling. Mahindra & Mahindra emerged as the biggest loser, shedding over 4 per cent. Other prominent laggards included Bharti Airtel, UltraTech Cement, Tata Motors, and Reliance Industries. In contrast, HCL Technologies, Tech Mahindra, Infosys, and Tata Consultancy Services managed to close in positive territory, providing some cushion to the falling index.
Broader Market and Sectoral Performance
The sell-off was not confined to large-cap stocks. Broader market indices also ended the day in negative territory. The BSE midcap gauge declined by 0.63 per cent, while the smallcap index dipped by 0.83 per cent.
Sectorally, the pain was widespread. The BSE auto index fell by 1.74 per cent, making it the worst-performing sector. The telecom, commodities, and oil & gas indices also registered notable declines of over 1 per cent each. However, the IT and teck sectors defied the overall negative trend, closing with gains.
What Drove the Market Lower?
Market analysts pointed to a combination of domestic and global factors for Tuesday's downturn. Persistent selling by Foreign Institutional Investors (FIIs) has been a major overhang on the market in recent sessions. Additionally, investors are exercising caution ahead of key corporate earnings announcements and macroeconomic data releases.
Weak cues from other Asian markets and a negative trend in European exchanges further dampened sentiment. The continuous outflow of foreign funds and a slight uptick in crude oil prices also contributed to the bearish mood on Dalal Street.
Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, noted that the market succumbed to profit-booking amid weak global cues. He highlighted that the lack of fresh positive triggers is keeping investors on the sidelines, leading to a phase of consolidation and correction.
The overall market breadth was negative, reflecting the widespread selling pressure. On the BSE, 2,308 stocks declined while 1,465 advanced. A total of 117 shares remained unchanged.
