Market Benchmarks Sensex Slips 140 Points, Nifty Hovers Near 25,900 Losses Amid Thin Year-End Participation
Indian equity markets traded with a cautious undertone on Tuesday, extending their recent slide as investors stayed on the sidelines amid muted year-end activity and lingering concerns over foreign fund flows. The Sensex slipped around 140 points, while the Nifty hovered near the 25,900 mark, reflecting a lack of strong near-term triggers and selective risk-taking across sectors.
At mid-session, the Sensex was down 103.87 points, or 0.12 percent, at 84,591.67, while the Nifty declined 35.15 points, or 0.14 percent, to 25,906.95. Market breadth remained weak, with 2,090 shares declining against 1,499 advances, indicating broader selling pressure beyond frontline indices.
An equity strategist at a domestic brokerage noted, “The market is clearly in a wait-and-watch mode. With the year drawing to a close and global cues offering little clarity, investors are preferring selective positioning rather than aggressive bets.”
Sectoral Trends Highlight Rotational, Not Risk-On, Sentiment
Sectoral performance underlined a mixed and rotational market tone rather than a broad-based risk-on rally. Cyclical and metal-linked stocks showed pockets of strength, while defensives, financials, technology, and consumption-oriented sectors continued to face selling pressure.
On the Nifty, auto, metal, and oil & gas indices managed to trade in the green, whereas IT, capital goods, consumer durables, and realty indices slipped around 0.5 percent each. BSE midcap and smallcap indices also traded lower, reinforcing the cautious undertone in the broader market.
Key gainers on the Nifty included:
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Shriram Finance
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Hindalco Industries
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Bajaj Auto
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Mahindra & Mahindra
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Tata Motors Passenger Vehicles
On the losing side were Max Healthcare, InterGlobe Aviation (IndiGo), SBI Life Insurance, Eternal, and Bajaj Finserv.
Also Read : Rising India Vix Weighs On Markets As Sensex Settles 300 Points Lower And Nifty Falls Below 25,950
Global Market Cues Offer Limited Direction to Indian Equities
Asian and European market cues remained largely subdued, offering little directional support to domestic equities. As of early afternoon Tokyo time, S&P 500 futures were little changed, reflecting a pause after recent moves in US markets.
Across Asia:
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Japan’s Topix fell 0.2 percent
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Australia’s S&P/ASX 200 was largely flat
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Hong Kong’s Hang Seng rose 0.3 percent
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Shanghai Composite traded near flat levels
Euro Stoxx 50 futures were also little changed, suggesting muted risk appetite globally as investors assess macro signals and positioning ahead of the new year.
Stock-Specific Action: Paras Defence in Focus After Brokerage Call
Paras Defence and Space Technologies came under pressure despite a fresh brokerage recommendation. Aditya Birla Money initiated coverage on the stock with a ‘buy’ rating, citing long-term growth prospects in the defence and space segment.
The stock was quoting at Rs 672.55, down 1.85 percent, after moving between an intraday high of Rs 688.40 and a low of Rs 670. Volumes were subdued at 15,138 shares, significantly below the five-day average. Paras Defence remains about 30.8 percent below its 52-week high of Rs 971.80 but nearly 67.7 percent above its 52-week low, highlighting the volatility in defence-linked counters. Market capitalisation stood at Rs 5,419.90 crore.
Nifty IT Index Extends Decline for Fifth Consecutive Session
The Nifty IT index extended its losing streak to a fifth straight session, weighed down by profit-taking and concerns over global tech spending. Coforge led the losses, falling 2.6 percent, followed by Oracle Financial Services Software, MphasiS, Persistent Systems, and Infosys.
Other IT majors such as TCS, Wipro, Tech Mahindra, and HCL Technologies also traded marginally lower, underscoring continued pressure on the sector. Analysts believe IT stocks may remain range-bound until there is clearer visibility on US demand trends and currency movements.
Waaree Renewable Gains After Capacity Enhancement Order
Waaree Renewable Technologies provided a rare bright spot in an otherwise subdued session after announcing a capacity enhancement under an existing EPC contract. The company said the project size was increased from 30 MWp to 35 MWp for a ground-mounted solar power project, including operations and maintenance.
The stock rose 0.7 percent to Rs 952.10, after touching an intraday high of Rs 958.95. Despite the gains, trading volumes were lower than the five-day average, suggesting cautious optimism rather than aggressive accumulation.
Bonds Market Steady Ahead of Heavy State Debt Supply
In the debt market, Indian government bonds traded in a narrow range as investors remained cautious ahead of a hefty state bond sale. The benchmark 10-year yield stood at 6.5969 percent by mid-morning, marginally higher than the previous close.
Indian states are set to raise Rs 354.50 billion through bond sales, the highest in over three months, which has kept bond investors cautious. One-year, two-year, and five-year OIS rates remained largely stable, indicating limited expectations of near-term policy shifts.
Investor Perspective: Blending Fundamentals and Technicals in Volatile Markets
Market participants continue to stress the importance of disciplined strategies in such environments. As one market veteran put it, “Fundamental analysis helps identify quality businesses for the long term, while technical analysis aids timing. In uncertain phases like this, combining both can help manage risk more effectively.”
