Equity benchmarks ended marginally lower on Tuesday after a volatile session, with the Sensex slipping 29.47 points or 0.04 per cent to 75,968, while the Nifty 50 declined 14.20 points or 0.06 per cent to 22,945.30, as gains in IT stocks were offset by weakness in auto and consumer goods sectors.
The market was resilient, recovering from early lows, though persistent foreign fund outflows and a weakening rupee continued to weigh on sentiment. The broader markets underperformed significantly, with the Nifty Smallcap falling 1.6 per cent and Midcap declining 0.2 per cent.
“The domestic market has experienced both profit-booking and bottom-fishing amid persistent concerns over FII outflows and pressure on the INR. Small and mid-cap stocks continue to lag due to apprehensions about premium valuations. Meanwhile, India’s trade deficit has widened beyond expectation,” said Vinod Nair, Head of Research at Geojit Financial Services.
NTPC emerged the top gainer on the NSE, surging 3.19 per cent, followed by Tech Mahindra (+2.17 per cent), Wipro (+2.01 per cent), ONGC (+1.01 per cent), and Apollo Hospitals (+0.92 per cent). On the flip side, IndusInd Bank led the losses, falling 2.49 per cent, followed by Trent (-2.17 per cent), BEL (-1.89 per cent), UltraTech Cement (-1.80 per cent), and M&M (-1.80 per cent).
The market breadth remained decisively negative, with 2,918 stocks declining, against 1,032 advances on the BSE. Notably, 787 stocks hit their 52-week lows, while only 51 touched their 52-week highs, indicating broader market weakness.
“Markets ended a tad lower in a sluggish trading session as caution prevailed amongst investors amid rising foreign fund outflows and falling rupee. Gains in IT, power, oil & gas, and metal stocks helped the market erase almost all its losses. However, expensive valuation concerns and a dismal earnings season continued to plunder small cap stocks,” noted Prashanth Tapse, Senior VP at Mehta Equities.
The rupee weakened to close at 86.91 against the US dollar, pressured by continued foreign outflows and rising crude oil prices. “Going ahead, rupee weakness could extend toward 87.25, with a range expected between 86.75-87.25,” noted Jateen Trivedi of LKP Securities.
Gold moves up
In commodities, gold continued its upward trajectory, with Comex gold trading above $2,925 per ounce, supported by global uncertainties and a weaker dollar. WTI crude oil remained stable around $71.40 per barrel, following Ukrainian drone attacks on Russia’s pumping station.
“Today, the benchmark indices witnessed narrow range activity. Technically, after an early morning intraday correction, the market took support near 22,800/75,500 and recovered. However, the short-term texture of the market remains on the weak side,” said Shrikant Chouhan, Head of Equity Research at Kotak Securities.
Nandish Shah from HDFC Securities noted, “The Nifty finally snapped its eight-session losing streak. After hitting early morning lows, the index staged an impressive recovery of nearly 250 points, demonstrating resilience. The anticipated support band of 22750-22800 worked out well.”
According to Satish Chandra Aluri from Lemonn Markets, “Markets continued to struggle for direction in yet another volatile session as benchmark Nifty 50 retested support levels around 22800, before bouncing off to close marginally lower. Foreign outflows continued to weigh, with 2025 outflows nearing ~1 lakh crores on worries over weak earnings.”
“Nifty traded within a range, with significant volatility. The broader market underperformed, with the Nifty Midcap 100 and Nifty Small Cap 100 indices closing down by 0.2 per cent and 1.6 per cent, respectively. The index has formed a high wave candle with a long lower shadow, indicating buying interest around the January lows,” reported Bajaj Broking Research.
Vinay Rajani, Senior Technical Analyst at HDFC Securities, added, “It was yet another session, where Nifty managed to protect the support of 22800. Nifty made an intraday low at 22801, and recovered 170 points from there in the second half.”
Investors are now awaiting the release of minutes of the Federal Reserve meeting, RBI meeting, and key speeches for further market direction. The significant foreign fund outflows, which have reached nearly ₹1 lakh crore in 2025, continue to impact market sentiment as global funds shift focus to China and European markets.
