Domestic equity benchmarks saw a sharp decline on Tuesday, with the Sensex dropping 893.39 points to 76,200.68 and the Nifty falling 278.80 points to 23,824.10. Heavy selling in metal, IT, and public sector banking stocks, influenced by weak global market cues, contributed to the downturn. Investor sentiment was subdued due to concerns over global growth and uncertainty in international markets, leading to broad-based selling across key sectors.
The Nifty index witnessed significant selling pressure from major laggards like Infosys, JSW Steel, and Tata Consultancy Services during the session. The broader market also experienced weakness, with the Nifty MidCap index ending 1.05% lower and the Nifty SmallCap index slipping 0.48%. Metal stocks were the biggest losers, with the Nifty Metal index plunging over 3%, while the Nifty IT and PSU Bank indices also underperformed.
Despite the overall decline, defensive sectors such as Nifty Pharma and Nifty Healthcare outperformed the market, attracting investor interest amidst heightened volatility. The technology index faced a decline of more than 2% amid a global sell-off, with all constituents ending in the red. Market sentiment weakened as early gains proved unsustainable, influenced by negative global cues and profit booking after a recent rally, intensifying downside pressure across key sectors.
Stable crude prices and easing geopolitical tensions provided some support, but investors remained cautious, focusing on the progress of the monsoon and ongoing US-India trade discussions, according to experts.
