Indian stock markets began Tuesday's trading session with a flat-to-negative opening. Investors displayed caution as multiple factors created headwinds for the benchmarks. The BSE Sensex and NSE Nifty both edged lower in early morning trade, reflecting the nervous mood on Dalal Street.
Benchmarks Show Minor Declines
The 30-share BSE Sensex traded at 83,224.93 points. It registered a small loss of 21.25 points, which translates to a decline of 0.03 percent. Meanwhile, the broader NSE Nifty50 stood at 25,574.55 points. It was lower by 10.95 points, representing a drop of 0.04 percent. These marginal moves indicated a subdued start to the trading day.
Key Factors Weighing on Sentiment
Market analysts pointed to several concerns affecting investor confidence. Persistent selling by foreign institutional investors remained a major drag. Geopolitical tensions across various regions added to the uncertainty. Furthermore, questions surrounding global trade policies created additional pressure. The combination of these elements fostered a risk-off attitude among participants.
Ponmudi R, the CEO of Enrich Money, commented on the market's cautious undertone. He stated that aggressive tariff actions by the US administration had triggered a global risk-off mood. He highlighted that heightened geopolitical issues, continuous foreign investor selling, and ongoing weakness in the Indian rupee were all weighing on confidence. According to him, these factors would likely limit any significant upside in domestic equities, even during short-term recovery phases.
Technical Outlook for Nifty
From a technical perspective, Ponmudi noted that the Nifty had slipped into a short-term bearish bias. This shift occurred after the index broke below the crucial 25,600 support level. He described the current phase as a consolidation-cum-correction within the 25,500 to 26,000 band. Immediate support is now seen at the 25,500 mark. For sentiment to stabilize, a close above 25,700 would be necessary. The Bank Nifty, however, continued to show relative strength, though a close below 60,000 could introduce caution.
Top Gainers and Losers
On the Nifty50, several stocks managed to post gains despite the overall weak sentiment. Dr. Reddy's Laboratories led the pack with a rise of 1.94 percent. Tata Consumer Products followed with a gain of 1.74 percent. Other notable gainers included HDFC Bank, Hindustan Unilever, Kotak Mahindra Bank, ICICI Bank, and State Bank of India.
On the losing side, Eternal topped the list with a sharp decline of 3.44 percent. Coal India Ltd dropped by 2.60 percent. Bajaj Finance fell by 2.50 percent. Other significant losers were Trent, InterGlobe Aviation, Tech Mahindra, Bajaj Finserv, Wipro, Apollo Hospitals, and Jio Financial Services.
Within the Sensex, the top gainers were HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Hindustan Unilever, State Bank of India, and Bharti Airtel. The major laggards included IndusInd Bank, Eternal, InterGlobe Aviation, Bajaj Finance, Tech Mahindra, Sun Pharma, Bajaj Finserv, Asian Paints, HCL Technologies, and Tata Steel.
Institutional Activity and Global Cues
Foreign institutional investors were net sellers on Monday. They offloaded equities worth Rs 3,262.82 crore. In contrast, domestic institutional investors provided support by purchasing shares worth Rs 4,234.30 crore. This steady buying by domestic players continues to act as a key stabilizer for the markets, according to analysts.
Asian markets presented a mixed picture on Tuesday. South Korean indices traded higher. However, markets in Japan, Shanghai, and Hong Kong moved lower. In the commodities space, Brent crude oil prices edged up slightly by 0.11 percent to $64.01 per barrel.
The overall market mood remains watchful. Investors are closely monitoring developments in global trade, foreign fund flows, and geopolitical events. These factors will likely dictate the near-term direction for Indian equities.
