Benchmark Indices Extend Losses as Profit Booking Dominates Trade Sensex Falls 376 Points, Nifty Slips Below 26,200
| Index | Price | Change | % Chg |
| Nifty 50 | 26,178.70 | 71.60 | -0.27% |
| Nifty Bank | 60,118.40 | 74.20 | +0.12% |
| Nifty Financial | 27,945.10 | 93.65 | +0.34% |
| BSE SENSEX | 85,063.34 | 376.28 | -0.44% |
Indian equity markets ended lower for the second consecutive session on Tuesday, with the Sensex and Nifty 50 retreating from record-adjacent levels amid sustained profit booking in heavyweight stocks and persistent foreign fund outflows. Investor sentiment remained cautious as a combination of domestic earnings cues, global trade concerns, and rising geopolitical risks weighed on risk appetite.
At the close, the Nifty 50 settled at 26,178.70, down 0.27 percent, after spending most of the session in negative territory and slipping below the psychologically important 26,200 mark. The benchmark had opened in the red and failed to sustain early recovery attempts. The Sensex declined 376 points, or 0.44 percent, to close at 85,063.34, reflecting broad-based pressure from select index heavyweights.
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Bank Nifty Shows Relative Strength Despite Volatile Market Conditions
In contrast to the broader market weakness, the Bank Nifty managed to close in the green, rising 0.12 percent to 60,118.40. On the charts, Bank Nifty has witnessed a falling trendline breakout on the daily timeframe and continues to consolidate at higher levels while sustaining above its short-term 50-period simple moving average on the hourly chart.
The daily RSI remains in a bullish crossover mode with a strong placement around 65, indicating positive momentum. Technically, analysts believe a buy-on-dips strategy can be maintained as long as the index holds above 59,300, with immediate support near 59,800 and resistance around the 60,500 zone.
Top Gainers and Losers Stocks
Top Gainers
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Apollo Hospitals (+3.50%)
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ICICI Bank (+2.80%)
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Tata Consumer Products (+2.78%)
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HDFC Life (+2.21%)
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Bajaj Auto (+1.80%)
Top Losers
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Trent (−8.46%)
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Reliance Industries (−4.39%)
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Kotak Mahindra Bank (−2.22%)
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InterGlobe Aviation (−1.96%)
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ITC (−1.84%)
Heavyweight Stocks Drag Benchmarks Lower in Profit-Booking Phase
The decline in benchmark indices was largely driven by selling in index heavyweights such as HDFC Bank and Reliance Industries, which exerted significant pressure on the indices. HDFC Bank fell around 1.5 percent, extending losses seen over the past two sessions following its provisional Q3 FY26 business update.
Reliance Industries dropped over 4 percent after the company said it does not expect Russian crude deliveries in January. The stock’s decline came after Donald Trump warned that Washington could raise tariffs on India over its oil purchases, reigniting trade-related concerns.
Sectoral Performance Highlights Rotation Within the Market
Sectorally, the market displayed clear divergence. Pharma and healthcare stocks outperformed, with both indices rallying over 1.5 percent, supported by defensive buying amid uncertainty. IT, metal, FMCG, and consumer durables stocks also managed modest gains.
On the downside, oil and gas stocks were the worst performers, with the sectoral index slipping 1.75 percent. Media and realty stocks also ended lower, reflecting selective risk-off sentiment among investors.
Top gaining sectors included:
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Pharma (+1.69%)
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IT (+0.55%)
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Metal (+0.29%)
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FMCG (+0.23%)
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Consumer Durables (+0.12%)
Top losing sectors were:
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Oil & Gas (-1.75%)
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Media (-1.05%)
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Realty (-0.33%)
Stock-Specific Action Sees Sharp Moves on Both Sides
Among individual stocks, ICICI Bank climbed 2.9 percent, helping lift the financials index as investors bet on improved credit growth and earnings momentum in the December quarter. On the other hand, apparel retailer Trent plunged nearly 8.6 percent amid concerns over intensifying competition in the retail space.
Other top gainers included Apollo Hospitals, Tata Consumer Products, HDFC Life, and Bajaj Auto, while stocks such as Kotak Mahindra Bank, ITC, and InterGlobe Aviation featured among the key losers.
Market Breadth Remains Weak as Decliners Outnumber Advancers
Market breadth reflected the cautious undertone, with decliners outnumbering advancers. Out of the total traded stocks, 1,239 advanced while 1,894 declined. As many as 106 stocks hit fresh 52-week highs, while 100 stocks touched new 52-week lows, underscoring heightened volatility and stock-specific action.
The India VIX, a measure of market volatility, edged down marginally by 0.04 percent to settle at 10.02, though it remains elevated compared with recent lows, indicating continued nervousness among market participants.
Technical View Suggests Range-Bound Bias With Downside Risks
Technically, after an early morning intraday rally, the market once again faced profit booking at higher levels. Analysts believe the intraday structure remains on the weaker side, though a fresh selloff is likely only if the Nifty breaches the 26,100 mark decisively.
Below 26,100, the index could slip towards 26,000–25,950, while on the upside, 26,250 remains an immediate resistance zone. A sustained move above this level could trigger a bounce towards 26,350–26,380.
“From a technical standpoint, the Nifty 50 continues to trade within a broader consolidation zone but with a positive bias,” one analyst noted, advising traders to trail positions and avoid chasing sharp opening moves.
Rupee Strengthens Marginally, But Structural Pressures Persist
The Indian rupee appreciated by 14 paise to close at 90.16 against the US dollar, snapping a four-day losing streak. The move was largely attributed to foreign bank dollar supply and tentative inflows from overseas investors.
However, currency strategists cautioned that the rupee remains vulnerable due to the structural mismatch between dollar demand from importers and limited supply. Looking ahead, the market is closely watching the Reserve Bank of India, which is set to conduct a $10 billion USD-INR buy/sell swap to ease domestic liquidity tightness.
Global Cues Mixed as Asia Rallies, US Futures Edge Higher
Global markets offered mixed cues. US equity futures traded modestly higher, with S&P 500 futures up 0.2 percent and Nasdaq 100 futures rising 0.4 percent. Asian markets were largely positive, with the MSCI Asia Pacific Index gaining 1.3 percent and Hong Kong’s Hang Seng climbing 1.6 percent.
European futures also edged higher, though analysts said global markets remain sensitive to geopolitical developments and trade-related headlines.
Geopolitics, Tariffs and FII Selling Drive Market Caution
Several factors contributed to the market’s weakness:
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Profit booking in heavyweight stocks after a recent rally
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Resurfacing tariff concerns following US warnings to India
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Continued foreign institutional investor selling
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Rising geopolitical tensions linked to Venezuela
Foreign institutional investors sold equities worth Rs 36.25 crore on Monday, adding to the pressure. Meanwhile, heightened uncertainty following the arrest of Venezuelan President Nicolás Maduro further dented risk appetite.
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Investments, said, “Heightened uncertainty triggered by unprecedented geopolitical events demands a cautious approach to investment supported by higher cash position to exploit sudden movements in the market.”
Stocks in F&O Ban List Today
The NSE derivatives ban list currently includes Sammaan Capital and SAIL, as both stocks have crossed the market-wide position limit. As per exchange rules, no fresh F&O positions are allowed in these counters and only existing positions can be squared off.
Several stocks are close to entering the ban list due to high open interest. These include IRCTC, Kaynes Technology, Bandhan Bank, RVNL, RBL Bank, along with Dixon Technologies, NMDC, and Aditya Birla Capital.
At present, there are no stocks slated for exit from the ban list. Traders are advised to closely monitor MWPL levels, as fresh additions to the ban list can restrict derivative trading and increase short-term volatility.
Outlook Hinges on Policy Signals and Global Developments
Looking ahead, analysts believe the market is waiting for a clear signal, either from the RBI on liquidity measures or from progress on global trade discussions, particularly between India and the US. Any escalation in geopolitical tensions, especially involving energy markets, could further influence investor behaviour and safe-haven demand for assets like gold.
For now, the near-term trend appears range-bound with a cautious bias. As one market expert summed up, “The market is consolidating after hitting record highs, and clarity on macro and geopolitical fronts will be crucial for the next directional move.”
With volatility elevated and key support levels under watch, investors are likely to remain selective, focusing on sectoral rotation and stock-specific opportunities in the sessions ahead.
FAQs Sensex Falls 376 Points, Nifty Slips Below 26,200
Why did the Nifty fall below 26,200 despite positive global market cues?
The Nifty slipped below 26,200 mainly due to profit booking in heavyweight stocks such as HDFC Bank and Reliance Industries, along with persistent foreign fund outflows and renewed tariff-related concerns from the US. Even though global markets showed strength, domestic factors and stock-specific selling dominated sentiment.
What triggered the sharp fall in Reliance Industries shares today?
Reliance Industries came under pressure after the company indicated that it does not expect Russian crude deliveries in January. The decline was amplified by comments from Donald Trump warning of potential tariff hikes on India, which revived concerns around energy supply and trade relations.
Why did pharma and healthcare stocks outperform when the broader market declined?
Pharma and healthcare stocks tend to act as defensive plays during periods of market uncertainty. With rising geopolitical tensions, tariff worries, and volatility in global markets, investors rotated money into relatively stable sectors such as pharmaceuticals and healthcare, leading to sectoral outperformance.
What does the current F&O ban list mean for traders and short-term investors?
Stocks in the F&O ban list, such as Sammaan Capital and SAIL, have crossed the market-wide position limit. This means traders cannot take fresh derivative positions in these stocks, which can reduce liquidity and lead to sharper price movements in the cash market.
How important is the 26,100 level on the Nifty from a technical perspective?
The 26,100 zone is seen as a crucial short-term support for the Nifty. A decisive break below this level could trigger further downside towards the 26,000–25,950 range, while holding above it may keep the market range-bound and allow for a technical bounce if buying interest returns.
What impact could rising geopolitical tensions involving Venezuela have on Indian markets?
Escalating tensions involving Venezuela could increase global risk aversion, impact crude oil prices, and influence investor behaviour worldwide. For Indian markets, this may lead to higher volatility, pressure on oil-related stocks, and increased demand for safe-haven assets such as gold, especially if energy supply risks intensify.
What key factors should investors track in the coming sessions?
Investors should closely monitor foreign institutional investor flows, updates on India–US trade negotiations, movements in crude oil prices, and policy signals from the Reserve Bank of India. These factors are likely to determine whether the market continues to consolidate or resumes its upward trend after the recent correction.
