Sensex ends 388 points lower, Nifty slips below 24,500; all eyes on global cues

Market closes in the red

Indian equity benchmarks ended Tuesday's trading session on a weak note, with the Sensex settling 388 points lower and the Nifty slipping below the 24,500 level. The decline marked a continuation of the recent volatility that has kept investors on edge.

The 30-share BSE Sensex closed at 80,305, down 0.48 per cent from the previous close. The broader NSE Nifty 50 ended at 24,432, shedding nearly 0.5 per cent. The day's trade saw the indices swing between gains and losses before settling firmly in negative territory.

What dragged the market down

Selling pressure was visible across most sectors, with information technology stocks and banking shares leading the fall. Heavyweights such as Reliance Industries, HDFC Bank, and Infosys contributed significantly to the index decline, according to provisional exchange data.

Market participants attributed the slide to a mix of global cues and domestic profit booking. Weakness in Asian peers and uncertainty over US Federal Reserve policy direction weighed on sentiment, traders said. The rupee's movement against the dollar also remained under watch through the session.

Broad-based selling

The market breadth was negative, with more stocks declining than advancing on both the BSE and NSE. Midcap and smallcap indices also traded lower, in line with the benchmarks, as risk appetite took a hit.

Among sectoral indices, Nifty IT fell over 1 per cent, while Nifty Bank dropped nearly 0.6 per cent. Auto and pharma stocks also ended lower, though losses were relatively muted compared to the tech pack.

Volatility expected to persist

Analysts say the market is likely to remain choppy in the near term, driven by global interest rate expectations and the ongoing quarterly earnings season. Domestic institutional investors have been net buyers on most days, but foreign outflows have kept the upside in check.

Technical charts suggest the Nifty has immediate support around the 24,300-24,200 zone, with resistance near 24,700. A sustained close above or below these levels could set the tone for the next move, traders noted.

Investors are also monitoring crude oil prices and the dollar index, both of which influence capital flows into emerging markets like India. Any sharp movement in these variables could trigger further volatility in the coming sessions.

What to watch next

Trading activity on Wednesday will hinge on global cues, particularly the release of US economic data and any fresh commentary from Fed officials. Domestic inflation numbers due later this week could also influence rate-sensitive sectors.

Market participants will keep a close eye on the upcoming monthly derivatives expiry, which could add to swings in the final hour of trading. Until clarity emerges on the macro front, analysts advise caution and stock-specific moves over broad bets.