Domestic benchmark indices extended losses in afternoon trade on Tuesday after flat opening, with IT and metal stocks dragging the market despite easing geopolitical tensions in West Asia. Investors turned cautious after the recent rally, while attention shifted to the progress of the monsoon as a key near-term trigger for market direction.
At 12.36 pm, the BSE Sensex was down 523.80 points, or 0.68 per cent, at 76,570.27 after touching an intraday low of 76,501.52. The NSE Nifty 50 declined 164.15 points, or 0.68 per cent, to 23,938.75, slipping below the psychologically important 24,000 mark.
BSE Sensex dragged 592.55 points from the previous close, while Nifty 50 slumped 185.6 points.
The weakness was visible across the broader market as well. The Nifty Midcap 100 index fell 0.83 per cent, while the Nifty Smallcap 100 index declined 0.63 per cent. Market volatility rose sharply, with the India VIX surging nearly 8 per cent to approach the 14 mark.
IT, metal stocks lead decline
Selling pressure was concentrated in information technology and metal counters. The Nifty IT index fell ahead of Infosys’ annual general meeting later in the day. Among frontline IT names, TCS, Infosys, Wipro and Mphasis declined between 2 per cent and 3 per cent, while Oracle Financial Services Software was the lone gainer in the sector, rising around 1 per cent.
Metal stocks also witnessed sharp profit-booking. Vedanta and National Aluminium Company slumped up to 8 per cent, leading losses in the Nifty Metal index, which emerged as one of the worst-performing sectoral gauges.
Sectorally, all major indices traded in the red except healthcare and pharmaceuticals. The Nifty Pharma index outperformed the broader market, supported by gains in Cipla, Sun Pharma and Dr Reddy’s Laboratories.
Nifty 50 movers today
Among Nifty 50 constituents, Cipla, Sun Pharma, Dr Reddy’s Laboratories, Shriram Finance and Asian Paints were the top gainers, while TCS, Infosys, Hindalco Industries, Wipro and Tata Steel were the biggest drags.
Market breadth remained decisively negative. Of the 3,254 stocks traded on the NSE, 990 advanced, 2,173 declined and 91 remained unchanged. As many as 132 stocks touched their 52-week highs, while 11 hit fresh 52-week lows. Additionally, 99 stocks were locked in the upper circuit and 46 hit the lower circuit.
Within the midcap space, Info Edge (Naukri), Laurus Labs, Aurobindo Pharma, Alkem Laboratories and SRF gained between 2 per cent and 4 per cent. On the losing side, National Aluminium Company, Voltas, Ashok Leyland and NMDC declined 3-6 per cent.
Among smallcaps, Cohance Lifesciences, PPL Pharma, Neuland Laboratories and Meesho rose 5-15 per cent, while Triveni Turbine, Netweb Technologies, Aster DM Healthcare and Pine Labs fell 2-4 per cent.
Market participants said the correction reflects a combination of profit-booking in rate-sensitive and cyclical sectors following the recent rebound in equities. With concerns around West Asia easing for now, investors are increasingly focusing on domestic factors, particularly monsoon progress and its implications for rural demand, inflation and economic growth in the coming months.