Sensex dips 70 points, Nifty 50 closes at 23,985; IT stocks gain
- Sensex declined 70 points in Tuesday's trading session.
- Nifty 50 closed at 23,985, near the day's low.
- IT stocks were the top gainers, bucking the broader trend.
Indian equity benchmarks ended Tuesday's session on a muted note, with the Sensex slipping 70 points and the Nifty 50 closing at 23,985. The day's trade was marked by selective buying in information technology stocks, which cushioned the downside in an otherwise sluggish market.
Sensex, Nifty 50 end lower
The BSE Sensex opened flat but drifted lower through the morning session. It recovered some ground in the afternoon but could not erase the losses. The index finally closed 70 points down from its previous close.
The Nifty 50, meanwhile, ended at 23,985 — just below the psychologically important 24,000 mark. Market breadth was negative, with more stocks declining than advancing on the National Stock Exchange.
IT stocks shine amid selling pressure
Information technology stocks were the standout performers of the day. Heavyweights such as Infosys, TCS and HCL Technologies saw buying interest, pushing the Nifty IT index higher.
Analysts attributed the rally to renewed global demand optimism and a weaker rupee, which benefits export-oriented IT firms. The sector's resilience provided a floor to the benchmarks even as other sectors faced selling.
Banking and financial stocks remained under pressure. HDFC Bank and ICICI Bank ended in the red, dragging the Nifty Bank index lower. Auto stocks also witnessed profit booking after recent gains.
Broader market underperforms
The broader market felt the heat as well. The BSE Midcap and Smallcap indices both declined, reflecting a risk-off mood among investors. Most sectoral indices on the BSE ended in negative territory.
Foreign portfolio investors have been net sellers in recent sessions, adding to the cautious sentiment. Domestic institutional investors, however, have been providing some support through sustained buying.
Volatility, as measured by the India VIX, edged higher, indicating that traders are bracing for more choppiness in the near term.
What to watch
Traders will now keep an eye on global cues, particularly the US Federal Reserve's policy stance and crude oil prices. Any escalation in geopolitical tensions could further dent sentiment.
On the domestic front, quarterly earnings from index heavyweights are due later this week, which could set the tone for the next leg of the market move. The Nifty 50's ability to reclaim the 24,000 mark will be closely watched in the coming sessions.