Benchmark stock market indices ended the day lower on Tuesday as investors remained cautious ahead of the US Federal Reserve’s policy decision and uncertainties surrounding the US-India trade deal. The S&P BSE Sensex closed down by 436.41 points at 84,666.28, while the NSE Nifty50 saw a decline of 120.90 points to settle at 25,839.65.
According to Vinod Nair, the Head of Research at Geojit Investments Limited, the domestic equity market started on a lower note due to profit booking amid concerns over the upcoming US Federal Reserve policy decision, weakness in the rupee, continuous foreign institutional investor outflows, and ongoing ambiguity regarding the US-India trade pact. Nair highlighted the importance of the Fed’s anticipated 25-basis point rate cut and the Bank of Japan’s expected rate hike, emphasizing the significance of the central bank’s guidance for 2026. He also mentioned that factors such as central bank statements, currency movements, and FII flows would influence market sentiment, with domestic macro resilience acting as a buffer against downside risks.
Among the top gainers on the Sensex were Eternal, up by 2.26%, followed by Titan Company with a gain of 2.13%. Adani Ports and Special Economic Zone rose by 1.07%, Bharat Electronics added 0.82%, and Bajaj Finserv increased by 0.36%. Conversely, there was notable selling pressure in key stocks, leading to declines. Asian Paints experienced the most significant drop, falling by 4.61%, while Tech Mahindra, HCL Technologies, Tata Steel, and Maruti Suzuki India also ended the day lower.
Ajit Mishra, the Senior Vice President of Research at Religare Broking Ltd., noted that while the benchmark index showed signs of pressure, it did not fully reflect the broader market correction, particularly in mid- and small-cap stocks. Mishra highlighted that the Nifty tested a critical support level near 25,800 and cautioned that a breakdown below this level could push the index lower towards 25,650. He suggested that the 26,000–26,200 range could pose a strong resistance barrier and advised traders to monitor position sizes carefully and wait for more stability indicators.
(Note: The opinions expressed by experts in this article are their own and do not represent those of any specific group. It is recommended to consult with a financial advisor before making investment decisions.)