Indian benchmark equity indices closed lower on Tuesday, erasing their intra-day gains due to weakness in banking, financial, and metal stocks. The Sensex dropped 114.19 points to close at 75,200.85, while the Nifty settled 31.95 points lower at 23,618. Experts noted that a sustained move above the 23,700–23,800 region is crucial for a recovery towards the 24,000 mark, facing potential selling pressure.
The 23,600–23,500 zone remains a key immediate support area for the Nifty, with a breakdown below this level possibly extending weakness towards the broader 23,300 zone. Major laggards in the Nifty index included Titan Company, UltraTech Cement, and Tata Consumer Products. Kotak Mahindra Bank led the losses on the Sensex, with other top laggards being Titan, Bharti Airtel, Sun Pharma, and IndiGo.
On the positive side, Infosys led the gainers, accompanied by HCL Tech, Tech Mahindra, Eternal, and TCS on the same index. The Indian rupee weakened significantly against the US dollar, touching a fresh low of 96.61 before settling at 95.53 per dollar. Banking and financial shares faced pressure, with the Nifty Private Bank index performing the worst, while the Nifty Bank and Nifty Financial Services indices also underperformed.
Despite the overall weakness, some sectors like Nifty IT, Nifty Realty, and Nifty Chemical indices ended higher, outperforming the benchmark indices. The broader markets showed resilience, with the Nifty MidCap index rising by 0.91% and the Nifty SmallCap index gaining 1.17% during the session. The rupee traded weaker near 96.53, impacted by elevated crude oil prices and ongoing pressure on capital flows. Analysts expect the rupee to trade within a range of 96.25–97.00 in the near term.
