Sensex ends flat, Nifty below 24,000 as global cues weigh on D-Street
- Sensex closed flat while Nifty slipped below the 24,000 mark.
- Global cues from Wall Street and Asian peers remained weak.
- FII outflows continued for the fifth consecutive session.
- Investors stayed cautious ahead of the US Federal Reserve policy decision.
- IT and banking stocks dragged the indices lower.
Markets end listless session
Indian equity benchmarks ended Tuesday’s session on a flat note, with the Nifty closing below the psychologically important 24,000 mark. The Sensex managed to hold its ground but failed to find any significant momentum through the day.
Traders described the session as range-bound and directionless. Volumes were lower than the recent average, reflecting a lack of conviction among participants.
Global uncertainty weighs on sentiment
Weak cues from global markets set the tone early. US stock futures traded lower overnight, and most Asian markets ended in the red on Tuesday. Concerns over slowing growth in China and rising bond yields in developed economies kept risk appetite in check.
Investors also turned cautious ahead of the US Federal Reserve’s interest rate decision later this week. Any hawkish surprise from the Fed could trigger capital outflows from emerging markets like India.
FII selling continues
Foreign institutional investors remained net sellers for the fifth straight session. Provisional data showed FIIs offloaded equities worth over ₹1,200 crore in the cash market on Tuesday.
Domestic institutional investors stepped in to absorb some of the selling pressure, but their buying was not enough to lift the indices into positive territory.
IT and banking stocks drag
Sectoral indices painted a mixed picture. The Nifty IT index fell nearly a percent, led by losses in Infosys and TCS. Weak quarterly results from some global IT peers and concerns over client spending added to the pressure.
Banking stocks also remained under pressure. HDFC Bank and ICICI Bank ended in the red, pulling the Nifty Bank index lower. Private sector banks have been struggling with margin pressures and slower deposit growth in recent months.
What lies ahead
Market participants will now turn their focus to the US Fed’s policy decision due later this week. Any indication of a prolonged tight monetary policy could keep Indian markets under pressure. On the domestic front, monthly auto sales data and the progress of the monsoon will be closely watched for cues on economic momentum.