Market Ends Lower Amid IT Sell-off; EV Stocks Shine
The Indian equity markets ended in negative territory on Tuesday, with IT stocks emerging as the biggest drag. However, electric vehicle (EV) stocks such as Ather Energy and Ola Electric rallied following the Delhi government's announcement of a new EV policy aimed at accelerating electric vehicle adoption and improving air quality.
The Nifty closed at 23,865.75, down 80.50 points or 0.34 per cent, slipping below the psychological 24,000 mark. The Sensex settled at 76,478.67, lower by 249.70 points or 0.33 per cent.
Broader Market Shows Resilience; Smallcaps, Midcaps Gain
The broader market remained resilient, with the Nifty Smallcap 100 rising 1.02 per cent and the Nifty Midcap 100 gaining 0.37 per cent. This indicates that while large-cap stocks faced pressure, investor interest in smaller companies remained strong.
EV Stocks Surge on Delhi EV Policy Announcement
Among EV-focused companies, Ola Electric shares closed in the green at Rs 43.76 apiece, up 8.37 per cent, while Ather Energy shares ended at Rs 1,140.55, gaining 5.24 per cent. The gains came after the Delhi government on Monday unveiled its EV policy to improve air quality and accelerate electric vehicle adoption in the national capital.
In contrast, several conventional automobile stocks remained under pressure. Hero MotoCorp declined 0.30 per cent, Bharat Forge slipped 0.96 per cent and Eicher Motors fell 4.38 per cent. Tata Motors gained 1.87 per cent, while Bosch rose 0.29 per cent.
Sectoral Performance: Healthcare, Chemicals Lead; IT Lags
Nifty Midsmall Healthcare emerged as the top sectoral gainer, surging 1.45 per cent, followed by Nifty Chemicals (1.42 per cent), Nifty Realty (1.31 per cent) and Consumer Durables (1.16 per cent). On the BSE, Maruti, Titan, Bajaj Finance, Eternal, Adani Ports, Bharti Airtel, IndiGo, Trent and NTPC were among the major gainers.
Infosys, ITC, HCL Tech, TCS and Tata Steel were among the top losers, with the IT index declining over 2 per cent.
Rupee Depreciates Against Dollar; Analyst Comments
The rupee ended the day at 94.66 per dollar against its previous close of 94.54 per dollar, marking its first quarter-on-quarter gain since March 2025. Dilip Parmar, Research Analyst at HDFC Securities, noted, "Indian rupee depreciated for the third consecutive session, weighed down by persistent safe-haven flows into the greenback and strong corporate dollar demand. Broader risk-off sentiment across global markets continues to keep the domestic currency under pressure."
According to Parmar, "Spot USDINR faces immediate resistance at 95.10, while a breakdown below 94.40 will act as key support."
Market Outlook: Consolidation Phase, Not Trend Reversal
Market analyst Vipin Dixena noted, "With Nifty ending below 24,000 and broader sentiment turning cautious amid profit booking and sectoral selling. This is still a consolidation phase, not a trend reversal."
As per Dixena, EV stocks have shown relative strength even in a down market, which signals long-term conviction. "The macro story remains intact, but sentiment needs 1-2 sessions to reset before the next leg up," Dixena said.
