Benchmark indices extended their losing streak for the third consecutive session on Tuesday, dragged down by the absence of any positive trigger and weak global cues.
The Sensex fell 872.98 points, or 1.06%, to close at 81,186.44, while the Nifty declined 261.55 points (or 1.05%) to end the day at 24,683.90, as investors resorted to profit booking. Over the past three sessions, both indices have declined by up to 1.63%.
“The Nifty slipped after two days of consolidation, dragged down by broad-based selling and weakening market breadth. Despite the decline, the short-term trend remains strong, although there is a possibility of a deeper pullback toward the 21-day EMA on the daily chart,” said Rupak De, senior technical analyst at LKP Securities.
He added that if the Nifty sustains below 24,700, the correction could extend further—potentially towards 24,300. However, a move back above 24,700 may indicate a return to the consolidation phase.
The broader indices also snapped their six-day winning streak on Tuesday. The BSE Midcap and BSE Smallcap indices fell 1.65% and 0.96%, respectively.
“With a lack of major positive triggers and prevailing uncertainty over US fiscal stability, investors opted for profit booking and adopted a cautious stance. Selling pressure was widespread as participants awaited more clarity on the India-US trade agreement,” said Vinod Nair, head of research at Geojit Financial Services.
Nair added that given the current premium valuations and delays in the trade deal, a phase of short-term consolidation is likely, which could lead foreign portfolio investors (FPIs) to scale back their positions in the domestic market.
The overall market breadth remained weak, with 2,642 stocks declining against 1,341 gainers on the BSE. Investor wealth eroded by Rs 5.65 lakh crore, with the total market capitalisation on the BSE falling to Rs 438.03 lakh crore.
All sectoral indices on both the BSE and the NSE ended in the red. Auto, consumer discretionary, utilities, services, and power were the top sectoral laggards, falling up to 2.13%.
Among the top Sensex losers were Eternal, Maruti Suzuki, M&M, UltraTech Cement, and Power Grid, with losses of up to 4.10%.
In the broader Asian markets, Hong Kong was the top performer with a 1.49% gain, while the Philippines was the worst, falling 1.85%. Other regional markets ended flat or posted marginal gains or losses.