Nifty snaps 4-day winning streak, closes below 24,650; Sensex ends lower

Indian equity benchmarks closed lower on Tuesday, with the Nifty50 snapping its four-day winning streak and settling below the 24,650 mark. The Sensex also ended in the red, as selling pressure across sectors outweighed early gains.

The pullback comes after a sustained rally that had pushed indices to recent highs. Traders opted to book profits at higher levels, while global cues remained mixed through the day.

Nifty gives up early gains

The Nifty50 opened on a positive note but failed to hold onto gains, slipping into negative territory as the session progressed. It eventually closed below 24,650, a level that had acted as support in recent trading days.

The Sensex mirrored the trend, ending lower by a few hundred points. Volatility was evident through the afternoon, with indices swinging between gains and losses before settling firmly in the red.

Sectoral selling spreads

Most sectoral indices on the National Stock Exchange ended in negative territory. Financials, IT, and auto stocks were among the major drags, while some defensive pockets offered marginal support.

Midcap and smallcap stocks also witnessed profit-taking, though the decline was less severe compared to the frontline indices. Breadth on the exchange favoured declines, with more stocks falling than advancing.

What weighed on sentiment

Market participants pointed to a lack of fresh triggers after the recent run-up. Global markets were subdued, and investors appeared cautious ahead of key economic data points scheduled later in the week.

Oil prices and currency movements also remained on the radar, though neither showed dramatic swings during the day. Analysts said the consolidation was healthy after four consecutive sessions of gains.

Investors watch for cues

Foreign institutional investors' activity will be closely tracked in the coming sessions, as their buying or selling has a notable impact on market direction. Domestic institutional flows have remained supportive in recent weeks.

Technically, the Nifty's ability to hold above the 24,500-24,600 zone will be crucial. A breach could invite further selling, while a rebound from current levels may resume the uptrend.

For now, traders are likely to remain stock-specific, with earnings announcements and global developments dictating the next move. The market's near-term direction hinges on how global peers perform and whether any fresh domestic triggers emerge.