Sensex tumbles over 1000 pts, Nifty ends below 25,250 amid sell-off

Indian benchmark indices closed deep in the red on Tuesday. Sensex plunged over 1000 points to 82,180.47, while Nifty fell 353 points to settle below 25,250 amid broad-based selling across sectors and negative global cues.

Stock market on Tuesday ended on a low amid selling across sectors with Nifty settling below 25,250. At the time of close, Sensex was down 1065.78 points or 1.28% at 82,180.47, and the Nifty was down 353 points or 1.38% at 25,232.50.

The domestic benchmark indices opened on a flat to negative note, reflecting a cautious sentiment across domestic markets. Among the sectors, Realty, Consumer Durables, Auto, IT, Metal, and Pharma indices witnessed fall. Rupee traded flat near 90.90 remaining range-bound with participants awaiting fresh triggers from the Union Budget.

Market Outlook

Vinod Nair, Head of Research, Geojit Investments Limited said, "Domestic markets remained cautious ahead of the U.S. Supreme Court's ruling on Trump-era tariffs, with renewed uncertainty over U.S. trade policy prolonging the recent consolidation. Continued FII outflows, rising U.S. and Japanese bond yields, and a weakening rupee weighed on investor confidence. Mid- and small-cap stocks underperformed the benchmarks, and sentiment was broadly negative across all sectors. In near term, market sentiment will hinge on the earnings season, while geopolitical developments and global trade conditions remain important influences"

Technical Perspective

Rupak De, Senior Technical Analyst at LKP Securities said, "Bears resumed control as bulls were increasingly marginalised amid ongoing transatlantic trade tensions. Supports looked fragile as the Nifty kept breaking them on the back of strong institutional selling. Indicators remained in a bearish crossover and are approaching the oversold zone. On the daily chart, the index appears to be drifting towards the 200-DMA. Immediate support is seen around 25,100-25,150. If this level holds, a decent pullback can be expected."

Global Cues and Investor Sentiment

Ponmudi R, CEO of Enrich Money, a SEBI said, "The aggressive and often unpredictable use of tariffs by the U.S. administration as a foreign policy tool is creating widespread unease among global market participants, triggering sharp volatility across financial markets. This has weighed heavily on risk assets while pushing safe-haven gold and silver prices higher. Fresh threats by U.S. President Donald Trump to impose additional tariffs on European nations opposing the U.S. move to take control of Greenland have triggered another bout of global equity selling, with Indian markets also witnessing broad-based pressure."

"The Indian equity market ended today's session on a decisively negative note, reflecting a combination of weak global cues, cautious investor positioning, and subdued risk appetite. Uncertainty around the U.S. interest-rate trajectory, early signs of a global growth slowdown, and ongoing international trade concerns kept participants defensive throughout the day. Adding to the negative tone, the rupee has weakened sharply, slipping past the psychological 91-per-dollar mark, further dampening investor sentiment," Ponmudi added. (ANI)

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