Market Closing Bell: Sensex, Nifty crash over 1 per cent amid FII outflows, weak global cues

Mumbai: Indian equity benchmarks — Sensex and Nifty — closed lower for the third consecutive session on Tuesday, dragged down by weak global cues and persistent outflows from Foreign Institutional Investors (FIIs).

The BSE Sensex tumbled 872.98 points, or 1.06%, to close at 81,186.44, down from its previous close of 82,059.42. During intraday trade, the index touched a high of 82,250.42 and a low of 81,153.70.

The NSE Nifty 50 also declined 261.55 points, or 1.05%, to settle at 24,683.90, compared to the previous close of 24,945.45. It touched an intraday high of 25,010.35 and a low of 24,669.70.

The market decline was primarily driven by heavy losses in auto, financial, and defence-linked stocks.

Sectoral and Broader Market Performance

All major sectoral indices ended in the red:

• Nifty Auto was the worst performer, falling 2.17%.

• Nifty IT and Nifty FMCG also posted notable losses.

In the broader markets:

• The Nifty Midcap 100 shed 1.62% to close at 56,182.65.

• The Nifty Smallcap 100 declined 0.94%, ending at 17,483.65.

Market Sentiment and Technical Outlook

“The Nifty slipped after two days of consolidation, dragged down by broad-based selling and weakening market breadth. Despite this decline, the short-term trend remains strong, although a deeper pullback toward the 21-day EMA on the daily timeframe is possible. The negative divergence on the daily RSI has added to the bearish sentiment. If the Nifty sustains below 24,700, the correction could extend further, potentially toward 24,300. However, a move back above 24,700 may signal a return to the consolidation phase,”
— Rupak De, Senior Technical Analyst at LKP Securities.

Stock Highlights

Among the Sensex 30 pack:

• Gainers: Tata Steel, Infosys, ITC, and Power Grid (up 0.73%).

• Laggards: Eternal (down 4.10%), Maruti Suzuki, Mahindra & Mahindra, UltraTech Cement, and Power Grid (despite marginal gains earlier).

Institutional Activity

According to exchange data:

• Foreign Institutional Investors (FIIs) sold shares worth ₹525.95 crore on Monday.

• Domestic Institutional Investors (DIIs) offloaded shares worth ₹237.93 crore.

Outlook

Market participants are advised to monitor key technical levels closely. Sustained weakness below the 24,700 mark on the Nifty could lead to further downside, while a rebound may bring the index back into a consolidation zone.