Indian stock market ends lower on profit booking, global uncertainty

Indian stock indices ended marginally lower on Tuesday due to profit booking and subdued market sentiment. Sensex fell 250 points, and Nifty slipped 57 points amid global uncertainty and a weak start to the Q3 earnings season.

Indian stock indices settled marginally lower on Tuesday, due to persistent subdued market sentiments and profit booking by investors. The Sensex declined 250.48 points (0.30 per cent) to close at 83,627.69, while the Nifty slipped 57.95 points (0.22 per cent) to 25,732.30.

Experts Weigh In on Market Decline

Market action reflects the interplay between earnings-related reactions and global uncertainty, Ajit Mishra - SVP, Research, Religare Broking Ltd. "Early optimism was supported by encouraging IT earnings and signs of progress in India-U.S. trade discussions, which lifted sentiment in the first half. However, the lack of follow-through and fresh selling in heavyweights across sectors capped the upside. Ongoing geopolitical and global trade concerns also continued to weigh on risk appetite, keeping trading largely stock-specific," Mishra said.

According to Vinod Nair, Head of Research, Geojit Investments Limited domestic equities experienced a downturn due to renewed concerns about potential US tariffs on countries trading with Iran, overshadowing the initial optimism from the newly appointed US ambassador's positive statements on the trade deal. "Investor sentiment remained cautious amidst the rupee's weakness, rising crude prices, higher U.S. bond yields, and persistent FII outflows. On a brighter note, India's December CPI remained within the RBI's target range, reinforcing expectations of future rate cuts. However, the Q3 earnings season commenced on a subdued note, with lacklustre results from a leading IT major. Profit booking was prevalent across most sectors, though small-cap stocks showed notable gains," added Nair.

Ponmudi R, CEO of Enrich Money, a SEBI - registered online trading and wealth tech firm, echoed that profit booking, global tariff-related concerns, and mixed reactions to Q3 earnings weighed on the indices.

Market Performance Overview

Sensex and Nifty have declined about 2 per cent each so far in 2026. Sensex and Nifty cumulatively rose 8-10 per cent in 2025, lower than the recent-year trends.

Market participants remained cautious, with experts pointing to low foreign investor participation. Foreign portfolio investors remained net sellers in India in 2025, data showed.

Investor Caution and Broader Trends

Overall, Indian equity markets had largely been choppy over the past months, barring some bullish days, as investors remained uncertain over the trade deal with the United States, which has imposed a 50 per cent tariff on Indian goods.

In 2024, Sensex and Nifty accumulated a growth of about 9-10 per cent each. In 2023, Sensex and Nifty gained 16-17 per cent, on a cumulative basis. In 2022, the indices gained a mere 3 per cent each. (ANI)

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