The markets ended lower on Tuesday, September 22, snapping a four-session winning run as selling pressure returned in the second half of the session. The Sensex fell nearly 330 points, while the Nifty 50 closed below the 23,350 mark.
The BSE Sensex dropped 329.91 points, or 0.44%, to settle at 74,529.08. The NSE Nifty declined 85.30 points, or 0.36%, to close at 23,329. The market had started the day on a stronger note, but early gains faded as investors turned cautious.
Selling was particularly visible in information technology, FMCG and banking stocks. The Nifty IT index fell 0.86%, extending its decline for a third straight session. Mphasis, Persistent Systems, TCS, Infosys, HCL Technologies and Tech Mahindra were among the IT stocks that ended lower.
The broader market remained relatively mixed. The Nifty Midcap 100 ended 0.08% higher, while the Nifty Smallcap 100 slipped 0.23%. On the BSE, 2,171 shares advanced and 2,181 declined, showing a broadly weak market at the close.
Coal India emerged as the strongest performer among Nifty 50 stocks, gaining 3.21%. The stock benefited after Morgan Stanley upgraded the company, according to Reuters. Eternal rose 1.82%, while InterGlobe Aviation, popularly known as IndiGo, gained 1.80%. Titan Company and Dr Reddy’s Laboratories also finished higher, rising 1.10% and 1.06%, respectively.
On the other side, Tata Consumer Products was the biggest Nifty loser, falling 1.65%. Nestle India declined 1.52%, while Bajaj Finserv and Bajaj Finance dropped 1.43% and 1.22%, respectively. Sun Pharmaceutical Industries also fell 1.20%.
The IT sector remained one of the main drags on the market. Investors continued to remain cautious about demand and earnings prospects for technology companies. The Nifty IT index has now fallen for three consecutive sessions, adding to the pressure on the broader market.
Foreign fund flows also remained a concern. Foreign institutional investors sold shares worth ₹576.20 crore on Monday, while domestic institutional investors bought equities worth ₹2,797.27 crore. Continued foreign selling has been an important factor keeping investors cautious in recent sessions.
Crude oil prices provided some relief during the session but remained an important factor for Indian markets. Brent crude had fallen sharply on Monday and was trading around $100 a barrel on Tuesday. Investors were watching developments in West Asia, including signs of possible diplomatic engagement between the US and Iran.
Lower oil prices can support Indian equities because India imports a large share of its crude requirements. A sustained rise in crude, on the other hand, can increase inflationary pressure and put pressure on the country’s trade balance and corporate costs.
Global markets offered a mixed backdrop. Asian stocks largely ended higher after Wall Street posted strong gains on Monday. The Dow Jones Industrial Average rose 0.71%, while the S&P 500 gained 1.49%. The Nasdaq climbed 2.26% to a record closing level, helped by strong gains in technology and semiconductor stocks.
Despite these positive global cues, Indian markets struggled to hold their early gains. The upcoming derivatives expiry also added to the day’s volatility, with traders closely watching movements in futures and options positions.
Several individual stocks also remained in focus. Transrail Lighting jumped 14.52% after completing the first phase of a brownfield expansion that increased its conductor manufacturing capacity. Pace Digitek gained 9.11% after its subsidiary received a ₹488.46-crore order from NTPC GE Power Services for a battery energy storage system project.
Garden Reach Shipbuilders and Engineers gained 1% after its board approved a ₹2,896-crore capital outlay for a new greenfield shipyard in West Bengal.
The market’s four-day winning streak has now come to an end, with investors balancing global gains against domestic concerns such as foreign outflows, IT weakness, geopolitical uncertainty and crude oil prices.
The focus is likely to remain on global oil prices, foreign fund flows, the rupee, US bond yields and upcoming corporate developments as investors assess the next direction for the Sensex and Nifty.