Benchmark stock market indices closed lower on Tuesday due to cautious investor sentiment ahead of the RBI’s rate cut announcement, resulting in profit booking. The S&P BSE Sensex ended the day down by 503.63 points at 85,138.27, while the NSE Nifty50 dropped 143.55 points to close at 26,032.20.
Vinod Nair, Head of Research at Geojit Investments Limited, mentioned that market trends showed ongoing profit booking amid concerns about the weakening rupee and continuous FII outflows. He also highlighted that the NSE’s sectoral index adjustments following Sebi regulations triggered corrections in major banking shares. Expectations of an RBI rate cut were diminishing due to robust GDP data and uncertainties surrounding US-India trade discussions, which could keep investors cautious in the near term.
After the closing bell, Asian Paints saw the most significant increase on the Sensex, climbing 3.11%. Maruti Suzuki followed with a gain of 0.83%, and Bharti Airtel rose by 0.59%. Bajaj Finance and Hindustan Unilever also posted gains of 0.54% and 0.50%, respectively. Conversely, ICICI Bank, Reliance Industries, HDFC Bank, Axis Bank, and Adani Ports were among the major decliners, with losses ranging from 1.24% to 1.30%.
At the close of trading, the Nifty Midcap 100 index fell by 0.22%, while the Nifty Smallcap 100 dropped 0.55%. The India VIX, a volatility indicator, decreased by 4.32%. Among the sectoral indices, Nifty IT, Nifty Metal, Nifty Pharma, and Nifty Healthcare Index recorded gains, while Nifty Auto, Nifty Financial Services, Nifty FMCG, Nifty Media, Nifty PSU Bank, Nifty Private Bank, Nifty Realty, Nifty Consumer Durables, and Nifty Oil and Gas were in the negative territory.
Despite the market fluctuations, Nair remains optimistic, pointing out strong domestic macro fundamentals and an improving earnings outlook for the second half of the fiscal year as potential supportive factors going forward.