Benchmark stock indices ended slightly lower after recovering from an earlier dip, influenced by ongoing foreign institutional investor (FII) outflows and the stalling of the US-India trade agreement, which has dampened market sentiment.
The S&P BSE Sensex fell by 54.30 points, concluding at 85,213.36, whereas the NSE Nifty50 decreased by 19.65 points, finishing at 26,027.30.
According to Vinod Nair, Head of Research at Geojit Investments Limited, the continuous outflows from foreign funds and a depreciating rupee have confined the markets to a limited range, with currency fluctuations likely persisting until there is more clarity regarding the India–US trade agreement.
“Prospects for an earnings rebound in the second half of FY26, bolstered by monetary and fiscal growth factors, are contributing to a stabilization in sentiment. Moving forward, market dynamics are expected to be driven by earnings rather than valuations. Investors are also looking forward to significant economic indicators such as U.S. CPI inflation and unemployment figures, which will influence global liquidity perspectives and the interest rate forecast for 2026,” he stated.
Among the top performers, Hindustan Unilever topped the list with a 1.37% increase, followed by Trent, which saw a 0.79% rise. HCL Technologies edged up by 0.68%, Asian Paints gained 0.53%, and Tata Steel climbed 0.52%, providing some support to the index.
On the downside, Mahindra & Mahindra was the biggest decliner, dropping 1.94%. It was succeeded by Maruti Suzuki, which fell 0.89%, Adani Ports, down 0.81%, Bajaj Finserv, which decreased by 0.75%, and HDFC Bank, which slipped 0.56%.
“Looking forward, signs suggest that consolidation will continue within the 25,800–26,200 range. Market fluctuations are expected to persist due to the weekly expiry and ongoing currency volatility. In the next session, the focus should remain on banking and IT sectors, given their significant market influence and sensitivity to capital flows, while defensive and commodity-related sectors may present tactical opportunities. Traders are encouraged to practice disciplined risk management and refrain from averaging into underperforming positions,” remarked Ajit Mishra, SVP of Research at Religare Broking Ltd.
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