Indian benchmark indices lost their early gains on Tuesday as selling in IT stocks dragged the market lower. The Sensex fell more than 200 points, while the Nifty slipped below the 23,400 mark after opening on a positive note.
The Sensex opened around 88 points higher at 74,947, while the Nifty gained nearly 41 points to touch 23,455. The early optimism, however, faded as investors turned cautious and selling emerged in key heavyweight stocks.
Among the top Nifty gainers, Coal India, Adani Enterprises, Trent, IndiGo and Asian Paints were in focus. Coal India led the early advance after Morgan Stanley upgraded its view on the stock.
On the other side, Tech Mahindra, HCL Technologies and Infosys were among the biggest losers. The Nifty IT index remained under pressure, extending its decline for a third consecutive session.
The weakness in technology stocks came despite positive signals from global markets. US equities closed higher in the previous session, while several Asian markets also started Tuesday in positive territory. Technology stocks had supported the US market, but Indian IT shares failed to follow the trend.
Crude oil prices remained another key factor for investors. Oil prices have eased from recent highs, offering some relief to India, one of the world’s major oil importers. Lower crude prices can help reduce pressure on the country’s import bill and inflation.
However, Brent crude continued to trade above the $100-a-barrel mark, keeping energy prices firmly on investors’ radar. Any fresh escalation in West Asia could push oil prices higher and increase concerns for oil-importing economies.
Investors are also watching developments involving the US and Iran as leaders gather for the United Nations General Assembly. Any signs of progress on diplomatic efforts could influence crude prices and global risk sentiment.
Foreign investor activity remains another concern for Dalal Street. Foreign institutional investors sold Indian equities worth around ₹576 crore in the previous session. Domestic institutional investors provided some support, buying shares worth nearly ₹2,797 crore.
The previous session had offered some relief to investors after a prolonged period of weakness. The Sensex had gained more than 564 points, while the Nifty rose nearly 68 points. The rebound came after both indices had suffered six consecutive weekly declines.
Tuesday’s reversal shows that investors remain cautious despite the recent recovery. Market participants are balancing supportive factors such as softer crude prices and strong domestic institutional buying against foreign outflows, geopolitical uncertainty and weakness in IT stocks.
The broader market was relatively steady, with buying interest visible in several mid-cap and small-cap stocks. However, movements in heavyweight shares continued to determine the direction of the benchmark indices.
The 23,400 level on the Nifty will remain important during the session. Investors will also track crude oil prices, the rupee, US bond yields, global markets and FII-DII activity for further direction.
With volatility remaining high, the market could continue to react quickly to global developments and sector-specific moves. For now, IT stocks remain a key drag, while gains in select energy, consumer and other large-cap counters are providing some support.