Benchmark stock market indices ended marginally lower on Tuesday as gains in information technology stocks were offset by weakness in banking shares, while investors remained cautious over uncertainty surrounding a possible US-Iran deal and continued pressure on the rupee.
The S&P BSE slipped 114.19 points, or 0.15%, to close at 75,200.85, while the NSE Nifty50 fell 31.95 points, or 0.14%, to settle at 23,618.
Investor sentiment remained cautious despite US President Donald Trump saying he had paused a planned attack on Iran after Tehran sent a peace proposal. Markets are now awaiting further clarity on whether diplomatic negotiations between the two countries will move forward.
Broader markets outperformed the benchmarks, with the Nifty Midcap 100 rising 0.91% and the Nifty Smallcap 100 gaining 1.17%. India VIX, the volatility index, declined 4.86%.
Among sectoral indices, Nifty IT emerged as the top gainer, climbing 3.23%, taking its three-session rally to over 7%. Analysts attributed the rise to bargain buying after the recent correction and support from a stronger dollar, which benefits Indian IT exporters that earn a large share of revenue from the US market.
Nifty Realty rose 1.43%, while Nifty Media gained 1.18%. Nifty PSU Bank climbed 0.81%, and Nifty Pharma, Nifty Healthcare Index and Nifty Consumer Durables also ended higher. However, Nifty Private Bank declined 0.74%, while Nifty Financial Services slipped 0.14%.
On the Sensex pack, Infosys surged 4.52%, HCL Technologies gained 2.73%, Tech Mahindra climbed 2.42%, and Tata Consultancy Services advanced 2.06%. Eternal Ltd also rose 2.03%.
On the losing side, Kotak Mahindra Bank fell 2.51%, Titan Company declined 1.88%, Cement slipped 1.69%, Bharti Airtel dropped 1.40%, and Sun Pharmaceutical Industries fell 1.24%. HDFC Bank and ICICI Bank also ended lower, weighing on the banking index.
Vinod Nair, Head of Research, Geojit Investments Limited, said, “Domestic equity indices pared early gains to close in the red, despite an initial upswing fueled by optimism surrounding a temporary halt in U.S. military operations against Iran.”
“IT stocks stood as a notable exception, registering robust advances on the back of anticipated tailwinds from an accelerating rupee depreciation and compelling valuations. Meanwhile, mid and small-caps quietly outshone their large-cap peers, drawing renewed buying interest after a meaningful correction,” he added.
Nair further said, “While fourth-quarter earnings continue to underscore the resilience of domestic economic momentum, market focus is increasingly pivoting toward mounting inflationary pressures. Concerns over potential earnings downgrades for Q1FY27 are gaining traction, driven by higher-than-anticipated WPI readings, the gradual pass-through of elevated fuel prices, and persistently firm bond yields.”
Meanwhile, the rupee weakened to a record low for the sixth straight session against the US dollar amid continued concerns over the prolonged US-Iran conflict and external pressures on the Indian economy.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
Benchmark stock market indices ended marginally lower on Tuesday as gains in information technology stocks were offset by weakness in banking shares, while investors remained cautious over uncertainty surrounding a possible US-Iran deal and continued pressure on the rupee.
The S&P BSE slipped 114.19 points, or 0.15%, to close at 75,200.85, while the NSE Nifty50 fell 31.95 points, or 0.14%, to settle at 23,618.
Investor sentiment remained cautious despite US President Donald Trump saying he had paused a planned attack on Iran after Tehran sent a peace proposal. Markets are now awaiting further clarity on whether diplomatic negotiations between the two countries will move forward.
Broader markets outperformed the benchmarks, with the Nifty Midcap 100 rising 0.91% and the Nifty Smallcap 100 gaining 1.17%. India VIX, the volatility index, declined 4.86%.
Among sectoral indices, Nifty IT emerged as the top gainer, climbing 3.23%, taking its three-session rally to over 7%. Analysts attributed the rise to bargain buying after the recent correction and support from a stronger dollar, which benefits Indian IT exporters that earn a large share of revenue from the US market.
Nifty Realty rose 1.43%, while Nifty Media gained 1.18%. Nifty PSU Bank climbed 0.81%, and Nifty Pharma, Nifty Healthcare Index and Nifty Consumer Durables also ended higher. However, Nifty Private Bank declined 0.74%, while Nifty Financial Services slipped 0.14%.
On the Sensex pack, Infosys surged 4.52%, HCL Technologies gained 2.73%, Tech Mahindra climbed 2.42%, and Tata Consultancy Services advanced 2.06%. Eternal Ltd also rose 2.03%.
On the losing side, Kotak Mahindra Bank fell 2.51%, Titan Company declined 1.88%, Cement slipped 1.69%, Bharti Airtel dropped 1.40%, and Sun Pharmaceutical Industries fell 1.24%. HDFC Bank and ICICI Bank also ended lower, weighing on the banking index.
Vinod Nair, Head of Research, Geojit Investments Limited, said, “Domestic equity indices pared early gains to close in the red, despite an initial upswing fueled by optimism surrounding a temporary halt in U.S. military operations against Iran.”
“IT stocks stood as a notable exception, registering robust advances on the back of anticipated tailwinds from an accelerating rupee depreciation and compelling valuations. Meanwhile, mid and small-caps quietly outshone their large-cap peers, drawing renewed buying interest after a meaningful correction,” he added.
Nair further said, “While fourth-quarter earnings continue to underscore the resilience of domestic economic momentum, market focus is increasingly pivoting toward mounting inflationary pressures. Concerns over potential earnings downgrades for Q1FY27 are gaining traction, driven by higher-than-anticipated WPI readings, the gradual pass-through of elevated fuel prices, and persistently firm bond yields.”
Meanwhile, the rupee weakened to a record low for the sixth straight session against the US dollar amid continued concerns over the prolonged US-Iran conflict and external pressures on the Indian economy.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)