MUMBAI: Benchmark indices Sensex and Nifty ended lower in a range-bound session on Tuesday as investors booked profits, particularly in banking and oil shares, while adopting a cautious stance amid escalating tensions between India and Pakistan.
The 30-share BSE Sensex fell 155.77 points or 0.19 per cent to close at 80,641.07, snapping a two-day winning streak. During the session, it had declined as much as 315.81 points to a low of 80,481.03. The NSE Nifty also declined, shedding 81.55 points or 0.33 per cent to end at 24,379.60.
Investor mood remained subdued ahead of the US Federal Reserve’s policy decision and amid concerns over the progress of US-China trade negotiations.
The Union Home Ministry has directed states and Union Territories to conduct security mock drills in light of rising Indo-Pak tensions following the recent terror attack in Pahalgam.
The drills, covering nearly 300 ‘civil defence districts’ with sensitive infrastructure like nuclear plants, refineries, and military bases, include air-raid siren tests and civil defence training.
Among Sensex constituents, major laggards included Eternal, Tata Motors, State Bank of India, Adani Ports, NTPC, IndusInd Bank, Bajaj Finance, Asian Paints, Axis Bank, and Sun Pharma. On the other hand, Bharti Airtel, Tata Steel, Mahindra & Mahindra, Hindustan Unilever, Nestle, and Maruti were among the top gainers.
“The domestic market has been consolidating after a strong recovery, driven by cautious sentiment amid India-Pakistan border tensions. Weak quarterly earnings growth has also weighed on investor sentiment,” said Vinod Nair, Head of Research at Geojit Financial Services.
He added that investors are closely watching India’s trade talks with the US, while no imminent rate cut is expected from the US Federal Reserve.
Meanwhile, India’s services sector activity saw a marginal pick-up in April, supported by stronger new order flows and faster job creation. The HSBC India Services PMI Business Activity Index rose to 58.7 in April from 58.5 in March, indicating robust expansion.
All eyes on Fed decision on rate
“Market volatility was heightened by geopolitical uncertainties and caution ahead of the Fed’s rate decision,” said Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services.
He noted that any progress on the US trade front could support the market in the short term, though geopolitical risks and the ongoing earnings season may keep investors on edge.
The broader BSE smallcap index fell 2.33 per cent, while the midcap index declined 2.16 per cent.
Sectorally, realty plunged 3.49 per cent, followed by power (2.64 per cent), services (2.53 per cent), utilities (2.36 per cent), industrials (2 per cent), capital goods (1.71 per cent), and consumer durables (1.59 per cent). Auto and teck were the only gainers.
In Asia, Shanghai’s Composite and Hong Kong’s Hang Seng ended in the green. Markets in South Korea and Japan were shut for holidays. European shares were trading lower in early deals, and US equities had ended in the red on Monday.
Foreign Institutional Investors (FIIs) bought equities worth Rs497.79 crore on Monday, according to exchange data.
Global crude benchmark Brent rose 2.76 per cent to $61.85 per barrel.
On Monday, the Sensex had gained 294.85 points or 0.37 per cent to close at 80,796.84, while the Nifty had added 114.45 points or 0.47 per cent to settle at 24,461.15.
