Benchmark stock market indices closed lower on Tuesday, as investor sentiment was cautious ahead of RBI’s rate cut announcement, leading to profit booking.
The S&P BSE Sensex lost 503.63 points to close at 85,138.27, while the NSE Nifty50 was down by 143.55 points to end at 26,032.20.
Vinod Nair, Head of Research, Geojit Investments Limited, said that markets continued to witness profit booking amid worries over the weakening rupee and persistent FII outflows.
“Meanwhile, the NSE’s sectoral index overhaul in line with Sebi regulations led to corrections in major banking counters. In the near term, fading expectations of an RBI rate cut owing to strong GDP data and the uncertainty around US–India trade discussions may keep investors on edge,” he added.
Asian Paints emerged as the biggest gainer on the Sensex after the closing bell, rising 3.11%. Maruti Suzuki followed with a gain of 0.83%, while Bharti Airtel added 0.59%. Bajaj Finance was also in the green with an increase of 0.54%, and Hindustan Unilever inched up 0.50%.
ICICI Bank fell 1.24%, Reliance Industries slipped 1.25%, HDFC Bank dropped 1.25%, Axis Bank declined 1.29%, and Adani Ports ended as one of the worst performers with a fall of 1.30%.
At the closing bell, the Nifty Midcap 100 index declined 0.22% while Nifty Smallcap 100 fell 0.55%. India VIX, the volatility gauge, dropped 4.32%.
Among sectoral indices, Nifty IT gained 0.01%, Nifty Metal rose 0.36%, Nifty Pharma advanced 0.13%, and Nifty Healthcare Index was up 0.01%.
Nifty Auto, Nifty Financial Services 25/50, Nifty FMCG, Nifty Media, Nifty PSU Bank, Nifty Private Bank, Nifty Realty, Nifty Consumer Durables, and Nifty Oil and Gas were in the red. Nifty Auto fell 0.03%, Nifty Financial Services 25/50 declined 0.68%, Nifty FMCG dropped 0.15%, Nifty Media slipped 0.83%, Nifty PSU Bank lost 0.18%, Nifty Private Bank fell 0.54%, Nifty Realty declined 0.14%, Nifty Consumer Durables dropped 0.49%, and Nifty Oil and Gas fell 0.40%.
“Even so, solid domestic macro fundamentals and a strengthening earnings outlook for the second half of the fiscal year are likely to lend support going forward,” said Nair.
