Stock market: Sensex slips 533 pts, Nifty below 25,900; what’s next?

Domestic equity benchmarks Sensex and Nifty slipped for a second consecutive session on Tuesday, pressured by sustained foreign portfolio selling, weakness in the rupee, and lingering uncertainty surrounding a potential trade pact with the United States.

At closing bell, the Sensex declined 533.50 points, or 0.63%, to settle at 84,679.86, while the Nifty50 also slipped 167.20 points, or 0.64%, to finish at 25,860.10.

Five stocks, namely Axis Bank, Reliance Industries, Eternal, Infosys and HDFC Bank, contributed heavily to the Sensex’s fall.     

Axis Bank emerged as top loser on the Sensex, falling 5.03% to Rs 1,219.65. Eternal followed with a 4.69% decline, while HCL Technologies, Bajaj Finserv, Tata Steel and UltraTech Cement dropped 1.90%, 1.86%, 1.74% and 1.56%, respectively. 

Among sectoral indices, the BSE Bankex index declined 1.03% to close at 66,024.80, while the BSE IT also dropped 0.90% to settle at 36,783.35.

Overall, of the 4,328 actively traded BSE stocks, 1,649 closed higher, 2,517 declined, and 162 remained unchanged. During the session, 100 stocks touched their 52-week highs, while 135 fell to 52-week lows. Meanwhile, 187 scrips hit their upper circuits, and 144 were locked in lower circuits.

Vinod Nair, Head of Research at Geojit Investments Limited, said domestic equities slipped into negative territory as the rupee weakened to fresh record lows, pressured by sustained foreign institutional outflows and a muted global risk environment.

“Small and mid-caps lagged large caps, with IT, metals, banking, and realty leading losses, while consumption stocks offered limited support. Volatility is expected to remain elevated amid currency fluctuations and uncertainty over foreign inflows. Progress on the US–India trade deal and rupee stabilisation will be critical, while softer commodity prices and improving earnings visibility provide a constructive medium-term backdrop,” Nair said.