Markets extended their downward spiral on Tuesday as the breached the psychologically critical 91-mark against the US dollar for the first time, triggering widespread risk aversion across sectors. The BSE Sensex plunged 533.50 points, or 0.63 per cent, to close at 84,679.86, while the NSE Nifty fell 167.20 points, or 0.64 per cent, to settle at 25,860.10. The currency touched a fresh all-time low of 90.87 during the session, amplifying concerns over persistent foreign institutional investor selling and weak global cues.
Foreign investors extended their selling streak to the twelfth consecutive session, offloading equities worth ₹1,468 crore, adding to the mounting pressure on domestic markets. “The continuous downward pressure from foreign fund outflows and persistent risk-aversion have pushed the Indian rupee to fresh historic lows, completely ignoring the support, participants have expected from better-than-anticipated trade data,” said Dilip Parmar, Research Analyst at HDFC Securities. “The immediate scramble for the dollar ahead of the US job report is amplifying volatility. However, given the sharpness of the recent depreciation, we expect the rupee to attempt to consolidate in the coming sessions, likely trading within a technical range defined by support at 90.50 and resistance at 91.45.”
Market breadth remained firmly negative with 2,523 stocks declining, against 1,654 advances on the BSE, while 158 shares remained unchanged. As many as 139 stocks hit their 52-week lows, compared to 103 touching their 52-week highs, reflecting the cautious sentiment prevailing across the Street. Among the 4,335 stocks traded, 10 hit the upper circuit, while 8 touched the lower circuit.
Sectoral indices witnessed broad-based selling pressure, with the Nifty Realty index emerging as the worst performer, shedding 1.50 per cent. The Nifty Midcap 100 declined 502.00 points, or 0.83 per cent, to 59,710.80, while the Nifty Smallcap 100 fell 160.70 points or 0.92 per cent to 17,265.15. The Nifty Bank dropped 427.20 points, or 0.72 per cent, to 59,034.60, while the Nifty Financial Services index declined 217.60 points, or 0.79 per cent, to 27,385.55. The Nifty Next 50 slipped 285.25 points, or 0.42 per cent, to 68,337.20.
On the Nifty 50, emerged as the top gainer, rising 1.70 per cent to close at ₹2,104.90, followed by , which gained 1.65 per cent to ₹3,930.00. advanced 1.26 per cent to ₹1,172.00, while gained 0.58 per cent to ₹3,628.90 and rose 0.55 per cent to ₹8,989.00.
However, the losers’ list was led by , which crashed 5.12 per cent to ₹1,219.00, followed by , down 4.67 per cent at ₹284.50. declined 2.66 per cent to ₹1,085.10, fell 1.91 per cent to ₹1,651.80, and dropped 1.78 per cent to ₹169.80.
“A risk-averse mood dominated trading as the rupee’s breach of the 91-level against the US dollar raised macro concerns, while weakness across Asian markets added to global uncertainty,” said Ponmudi R, CEO of Enrich Money. “This combination prompted investors to reduce risk, triggering broad-based profit-booking, particularly across realty, financial services, metals and IT names. Nifty 50 traded with a negative bias through the day, but managed to hold above the crucial slope support near 25,850, reinforcing the view that the market remains in a range-bound consolidation phase, not a trend reversal.”
Technical analysts highlighted continued weakness in the banking sector. “On Tuesday’s session, Bank Nifty ended on a cautious note, forming a bearish candlestick and closing below its 10-day and 20-day SMAs, reflecting short-term pressure,” said Vatsal Bhuva, Technical Analyst at LKP Securities. “The RSI is making lower tops, which highlights weakening momentum and lack of buying strength. Overall, the chart structure appears slightly weak. The index has crucial support at 58,800; a decisive close below this could open downside towards its 50-day SMA placed in the 58,300–58,200 zone.”
On the commodity front, gold prices remained volatile as profit-booking weighed on sentiment. “Gold prices remained volatile as early trade witnessed profit-booking, with Comex gold slipping towards the $4,275 level and staying under pressure,” said Jateen Trivedi, VP Research Analyst at LKP Securities. “However, domestic prices found support from a weak rupee, limiting losses in MCX gold to around 0.40 per cent, compared with a sharper 0.70 per cent decline in Comex. In the near term, gold is likely to trade in a volatile range of ₹1,31,000–₹1,35,000.”
Looking ahead, market participants remain cautious about near-term direction, with key resistance levels and global cues likely to determine the trajectory. “We maintain our consolidation view on the Nifty; however, continued deterioration in the currency could widen the trading range and potentially drag the index below the previous swing low near 25,700,” said Ajit Mishra, SVP Research at Religare Broking. “On the upside, the 26,000–26,100 zone remains a key hurdle. In the current environment, we continue to recommend a stock-specific trading approach, with a preference for hedged positions given the prevailing volatility and choppy market conditions.”