Domestic equity markets ended in the red on Tuesday following a cautious shift in investor sentiment triggered by renewed geopolitical tensions. After a strong start, indices lost ground as US President Donald Trump issued a stern warning to Iran over the ongoing conflict, criticizing Tehran for not pursuing a nuclear deal with Washington.
The BSE Sensex dropped 212.85 points, or 0.26%, to close at 81,583.3, after touching an intraday low of 81,427. Meanwhile, the Nifty50 declined by 93.1 points, or 0.37%, settling at 24,853.40.
Broader Markets and Sectoral Performance
Losses extended beyond the benchmark indices. The Nifty Midcap100 and Nifty Smallcap100 fell 0.79% and 0.82%, respectively, indicating weakness across the broader market.
Sector-wise, sentiment was largely bearish, with IT being the only gainer. Among the laggards, Nifty Pharma plunged 1.89%, followed by Nifty Metal, which declined 1.43%. Other sectors including Consumer Durables, Oil & Gas, Realty, Auto, Energy, Banking, FMCG, and Media also registered losses of up to 1%.
Stock Highlights
Out of the 30 Sensex constituents, 21 stocks ended in the red. Major losers included Tata Motors, Eternal, Sun Pharma, Bajaj Finance, IndusInd Bank, Bajaj Finserv, and Nestle India.
On the flip side, Tech Mahindra, Asian Paints, Infosys, Maruti Suzuki, NTPC, TCS, and HCL Tech emerged as the top gainers, offering some support to the indices.
Volatility Gauge
Despite the market dip, volatility remained under control. The India VIX, which measures market fear, slipped 2.93% to close at 14.402, signaling that investors are not yet in panic mode.
Outlook
Analysts suggest that geopolitical developments will remain a key overhang in the near term. While domestic fundamentals remain stable, global uncertainties, particularly around US-Iran relations, may continue to influence market trends.
