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News Topical, Digital Desk : The domestic stock market declined for the second consecutive day on Tuesday. Both the Sensex and Nifty closed in the red, shedding their initial gains. Selling by foreign investors, weak global cues, and futures expiry increased market volatility. Profit-booking continued to weigh on the market in the morning session. Meanwhile, the rupee weakened and crude oil prices rose slightly, further weakening investor sentiment.
The Indian stock market experienced another downtrend on Tuesday. After an initial gain, selling pressure took over. By 1 pm, the Sensex was down 355 points, or 0.43%, at 81,971.95, while the Nifty was trading down 102 points, or 0.41%, at 25,124.60. The index lost nearly 400 points from its day's high. Tata Motors, Wipro, and ONGC were the top gainers in the Nifty pack, while heavyweights like Bajaj Finance and Axis Bank remained weak.
1. Foreign Investor Selling - On Monday, foreign investors (FIIs) sold shares worth approximately ₹240 crore after four consecutive days of buying. Experts say this withdrawal of foreign funds is directly weighing on market sentiment.
2. Expiry Volatility - Due to the Nifty expiry week, the market was highly volatile. Intra-day volatility increased as derivative traders adjusted their positions.
3. India VIX surged - The volatility index India VIX rose 3% to reach 11. A high VIX indicates increasing fear and volatility in the market, making investors cautious.
4. Weak global cues - The decline in Asian markets also affected the Indian market. Korea's Kospi and Shanghai Composite fell by about 1%, while Japan's Nikkei 225 and Hong Kong's Hang Seng fell by 3%. US futures were also down by 0.5%, dampening sentiment even before the market opened.
5. Rupee weakens, crude prices rise - The rupee weakened by 9 paise to ₹88.77/$ in early trading. Brent crude rose 0.33% to $63.53 per barrel. High oil prices typically increase both inflation and the trade deficit, impacting the market. Shrikant Chauhan, Head of Equity Research at Kotak Securities, said that 25,150–25,100 for Nifty and 82,000–81,800 for Sensex are important support zones. If these levels are breached, Nifty could move towards 25,000–24,950. On the upside, resistance is at 25,350–25,400. “Until the market breaks above 25,330, weakness may persist,” he said. Siddharth Khemka of Motilal Oswal said that for now, “the market will remain range-bound, and the direction will be determined by quarterly results and global tariff developments.” Weak global cues, foreign selling, and increased volatility are putting pressure on the market. However, analysts believe this is a short-term correction, and the results season will determine the market's new direction in the coming weeks.
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