The BSE Sensex fell 53.49 points, or 0.06%, to settle at 82,391.72, while the NSE Nifty eked out a modest gain of 1.05 points to close at 25,104.25.
The market capitalization of all listed companies on the BSE decreased by Rs 47,163 crore to Rs 455.40 lakh crore.
Sector Watch
Indian benchmarks Sensex and Nifty opened higher, rising around 0.4% in early trade, but later gave up gains to end largely flat.
The heavyweight financial stocks were the biggest drag on the session. The Nifty Financial Services and Nifty Bank indices declined 0.5% and 0.4%, respectively, after a four-day rally that saw financials gain 2.8%.
Benchmark constituents HDFC Bank and ICICI Bank shed 0.6% and 0.8%, respectively.Information technology stocks outperformed, with the Nifty IT index rising 1.7% on the day, buoyed by optimism surrounding U.S.-China trade negotiations. The sector benefits significantly from U.S. exposure.In the 30-stock Sensex pack, Tech Mahindra, Tata Motors, Infosys, HCL Technologies, IndusInd Bank, UltraTech Cement, TCS, and ITC were among the top gainers, advancing between 1% and 2.3%.
Meanwhile, Asian Paints, Bajaj Finance, Tata Steel, ICICI Bank, Maruti Suzuki and Reliance Industries were the biggest laggards on Sensex, falling up to 1.3%.
Broader markets edged higher, with the more domestically focused Nifty Smallcap 100 and Nifty Midcap 100 rising 0.1% and 0.01%, respectively.
Expert View
The domestic equity benchmarks traded within a narrow range as investors adopted a cautious approach following the recent rally driven by favourable domestic macroeconomic indicators and concerns over stretched valuations, said Vinod Nair, Head of Research, Geojit Investments.
“However, the overall sentiments remained on the positive side on account of optimism around U.S.-China trade negotiations. Additionally, a firm U.S. dollar acted as a tailwind for export-oriented sectors, particularly IT and Pharma, which attracted strong buying interest,” said Nair.
The Nifty has sustained above the previous consolidation zone on the daily timeframe, indicating a continuation of the uptrend, said Rupak De, Senior Technical Analyst at LKP Securities, adding that the positive sentiment is likely to persist and that the sentiment favours long trades as long as the index remains above the key support level of 24,850.
“On the higher side, the index may move towards 25,350 in the short term, with the potential for an extended rally if it breaks decisively above 25,350. However, a fall below 24,850 could trigger a correction,” said De.
Global Markets
World equities and the U.S. dollar edged higher on Tuesday as hopes grew that trade tensions between the world’s two largest economies may be easing, with U.S.-China negotiations extending into a second day.
U.S. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer were scheduled to meet their Chinese counterparts again in London, signaling ongoing dialogue.
The MSCI All-Country World Index hovered near record highs, while the dollar strengthened modestly against a basket of major currencies.
In regional markets, Europe’s STOXX 600 was little changed. In Asia, Tokyo’s Nikkei 225 added 0.3% but gave up much of its early gains. South Korea’s Kospi advanced 0.6%, while Hong Kong’s Hang Seng Index slipped 0.1% after an initial uptick. Mainland China’s Shanghai Composite fell 0.4%.
U.S. Treasury yields eased, with the benchmark 10-year note yielding around 4.45%, down 3.2 basis points on the day.
Traders broadly expect the Federal Reserve to hold rates steady at its policy meeting next week, with markets pricing in just 44 basis points of rate cuts by December.
Meanwhile, spot gold inched up 0.15% to $3,332 an ounce.
Crude Impact
Oil prices edged higher on Tuesday, supported by optimism around ongoing U.S.-China trade talks and expectations of a slight dip in Saudi Arabia’s crude exports to China.
Brent crude futures rose 16 cents, or 0.2%, to $67.20 a barrel by 08:49 GMT, while U.S. West Texas Intermediate (WTI) crude gained 14 cents, or 0.2%, to trade at $65.43.
Rupee vs Dollar
The Indian rupee closed at 85.6025 against the U.S. dollar on Tuesday, nearly unchanged from its previous close of 85.62, mirroring muted moves in most Asian currencies.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was higher by 0.15% at 99.09.
(with inputs from agencies)
