Equity indices declined for a second straight day on Tuesday as heavy selling in information technology stocks and profit booking in banking and FMCG shares weighed on sentiment. However, buying in mid cap and small cap stocks helped cushion the broader market, with overall investor wealth continuing to rise.
The Sensex fell 250.13 points, or 0.33 percent, to close at 76,478.67, while the Nifty 50 lost 80.65 points, or 0.34 percent, to end at 23,865.75.
Over the past two trading sessions, both benchmark indices have declined about 0.8 percent.
Despite the weakness in frontline stocks:
Nifty Midcap 100 gained 0.37 percent
Nifty Smallcap 100 rose 1.02 percent
BSE-listed companies' market capitalisation increased to nearly ₹474.2 lakh-crore from ₹473.7 lakh-crore in the previous session
The Indian rupee weakened by 15 paise to close at ₹94.65 against the US dollar, while Brent crude traded above $73 a barrel.
The market came under pressure mainly due to losses in IT, banking and FMCG stocks.
Major drags on the Sensex included:
Infosys
TCS
HCL Technologies
ICICI Bank
Reliance Industries
State Bank of India
ITC
Market participants booked profits in banking and FMCG stocks amid concerns over the slow progress of the monsoon, while IT shares remained under pressure because of weak global demand and concerns that increasing adoption of artificial intelligence could affect sector profitability.
Investors also remained cautious amid lingering geopolitical uncertainties.
Reports indicated that the US and Iran could resume negotiations in Doha, Qatar, with diplomatic engagements continuing after recent tensions in the region.
Market experts believe investors are also awaiting key US economic data and signals from the US Federal Reserve on the future path of interest rates.
According to analysts, concerns over a weak monsoon could hurt agricultural output and rural demand, adding to worries over first-quarter corporate earnings.
However, easing crude oil prices, relative stability in the rupee and moderation in foreign institutional investor (FII) outflows could provide near-term support to Indian equities, particularly large cap stocks.
Major Nifty losers
Eicher Motors
Tata Consumer Products
TCS
Infosys
Wipro
HCL Technologies
Tech Mahindra
Top gainers
Maruti Suzuki
Titan Company
Bajaj Finance
Adani Enterprises
Eternal
Twenty-five stocks each advanced and declined on the Nifty 50.
Sectoral indices ended on a mixed note.
Top losers
Nifty IT: down 2.73 percent
Nifty FMCG: down 0.68 percent
Bank Nifty: down 0.32 percent
Nifty Financial Services: down 0.16 percent
Top gainers
Nifty Realty: up 1.31 percent
Nifty Consumer Durables: up 1.16 percent
