Indian stock markets declined for the second consecutive day on Tuesday, with IT shares leading the losses. The 50-share NSE Nifty dropped 80.50 points, or 0.34 per cent, to close at 23,865.75. The BSE Sensex also fell, mirroring the broader market trend.
IT stocks drag benchmarks lower
Information technology stocks were the biggest losers, contributing significantly to the market's downturn. According to analysts, profit-booking in IT majors after recent gains weighed on the indices. The Nifty IT index declined over 1 per cent during the session.
Broader market shows mixed trends
While the benchmarks ended in the red, broader market indices showed mixed performance. The Nifty Midcap 100 index managed to close flat, while the Nifty Smallcap 100 index gained marginally. Sectoral indices were largely negative, with selling pressure seen in technology, consumer durables, and oil & gas stocks.
Global cues and investor sentiment
Weak global cues also impacted investor sentiment. Asian markets traded lower, and US futures pointed to a subdued opening. Foreign institutional investors (FIIs) remained net sellers in the cash market, adding to the pressure. According to market participants, uncertainty ahead of key economic data releases kept investors cautious.
Outlook for the near term
Analysts expect the market to remain volatile in the near term, with IT stocks likely to be in focus. The Nifty has support at 23,700 levels, while resistance is seen at 24,000. Traders are advised to adopt a stock-specific approach and maintain strict stop-losses.
