The Indian stock market remained mostly muted on Tuesday, with Sensex and Nifty erasing early gains to close in the red after a sharp rally in the earlier session.
Sensex lost 70 points to close at 76,766, while Nifty 50 fell nearly 11 points to end the session at 23,985. Broader markets remained mixed, with Nifty Smallcap 100 closing in the red and Nifty Midcap 100 index ending in the green.
TCS, Eternal, Tech Mahindra, Titan, Infosys, HCLTech, M&M and Asian Paints shares led gains on Sensex, rising 1-4%. Hindustan Unilever (HUL), Bharat Electronics (BEL) and NTPC shares dropped 2-7%, leading losses.
Nifty IT rallied more than 3% as investors looked at the sharp sell-off in global AI-linked stocks for signs of a potential shift in sentiment towards the sector. Nifty Realty jumped more than 2% while Nifty Consumer Durables gained over 1%. Nifty FMCG dropped over 1%. The overall market breadth turned negative, with NSE seeing 2,133 declines and 1,160 advances, while 114 stocks remained unchanged.
What analysts say
The respite in crude oil prices provided relief to markets by easing concerns over inflation and input cost pressures, but investor sentiment remained cautious ahead of key central bank policy meetings this week, including those of the Fed, BoE, and BoJ, said Vinod Nair, Head of Research, Geojit Investments.
Persistent volatility in energy markets and heightened geopolitical risks could keep global bond yields elevated this year, he noted. Nevertheless, expectations that major central banks will hold interest rates steady in their July policy meetings have offered some support to market sentiment.
“India's relative advantage under the revised US tariff framework further supported investor confidence. On the domestic front, improving monsoon conditions and moderately better Q1 FY27 earnings have strengthened the growth outlook. Sectoral trends remained mixed, with IT stocks continuing to outperform, supported by attractive valuations,” the analyst said.
Tech view on Nifty
Nifty 50 index remained range-bound during the day, with the regular monthly expiry volatility largely absent, Rupak De, Senior Technical Analyst at LKP Securities, said. Nifty closed around the 50 EMA for the second consecutive day, suggesting indecisiveness among traders.
“On the higher end, 24,050 remained a strong resistance, while on the lower end, support was seen around 23,920. A decisive move above 24,050 in the near term might provide the required strength for the index to move towards 24,500 in the short term. On the lower end, support is placed at 23,800,” according to the analyst.
( With inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
