Markets closed sharply lower on Tuesday after sustained selling in technology stocks and weak global cues dragged benchmarks below key support levels.
The Sensex fell 1,068.74 points, or 1.28 per cent, to close at 82,225.92 after opening at 83,052.54 against the previous close of 83,294.66. The Nifty 50 declined 288.35 points, or 1.12 per cent, to 25,424.65.
Market breadth remained negative with 2,889 stocks declining against 1,344 advances on the BSE, while 357 stocks hit 52-week lows. Sectoral indices were mixed but tilted negative, with IT and financials leading declines. Nifty Bank ended at 61,047.30, down 0.35 per cent, while Nifty Midcap 100 fell 0.32 per cent and Nifty Smallcap 100 declined 0.55 per cent.
Technology stocks bore the brunt of selling pressure. Among Nifty losers, Tech Mahindra dropped 6.17 per cent to ₹1,352.00, HCL Technologies fell 5.83 per cent to ₹1,343.00, Eternal declined 5.07 per cent to ₹254.40, Tata Consultancy Services lost 3.56 per cent to ₹2,581.00, and Infosys slipped 3.56 per cent to ₹1,280.20.
Selective buying emerged in energy and metal counters. Among gainers, NTPC rose 2.41 per cent to ₹384.50, Coal India advanced 1.28 per cent to ₹431.45, JSW Steel gained 1.27 per cent to ₹1,256.20, Hindalco Industries added 0.99 per cent to ₹925.30, and Hindustan Unilever rose 0.83 per cent to ₹2,364.80.
Analysts attributed the decline to global uncertainty and sector-specific pressure. Ponmudi R of Enrich Money said markets traded cautiously as investors avoided aggressive positions amid tariff concerns and AI-led disruption fears. He noted that defensive positioning dominated trading activity.
Ajit Mishra of Religare Broking said, “Markets remained under pressure on Tuesday and traded sharply lower amid weak global cues… buying in select heavyweight stocks during the final hours trimmed some of the losses… sectoral trends were mixed with metals and energy higher while IT and realty lagged.”
Siddhartha Khemka of Motilal Oswal Financial Services said volatility remained elevated due to global uncertainty and derivatives expiry, adding that “investors are gradually shifting focus toward domestic-facing sectors and themes less exposed to AI-related disruption… capital goods and industrial metals continue to see selective interest.”
Currency markets reflected risk-off sentiment. According to Dilip Parmar of HDFC Securities, the rupee weakened against the dollar due to importer demand and upcoming non-deliverable forward obligations of the Reserve Bank of India. He said, “Rising energy and bullion prices remain a key drag on the local currency… near-term bias continues to favour dollar bulls.” The USD/INR pair faces resistance near 91.10–91.40 and support around 90.60.
Commodity trends also weighed on sentiment as firm crude oil and bullion prices increased macro pressure on imports and currency stability.
Technical indicators signalled continued fragility. Analysts noted the Nifty slipping below key moving averages with resistance seen near 25,600 and support around 25,300. Options data indicates a defined near-term range between these levels, while Bank Nifty faces resistance near 61,400 and support around 60,800.
Traders expect volatility to persist amid global developments, currency movements and upcoming international macro data. Market participants will track US consumer confidence and Eurozone inflation readings, while domestic indices are likely to remain range-bound unless benchmarks decisively break key support or resistance levels.