Indian equity markets witnessed a sharp selloff on Tuesday, with the benchmark Sensex plunging over 1000 points to slip below the 83000 level, tracking sluggish global markets amid escalating geopolitical tensions.
Continued weakness in the rupee and persistent foreign fund outflows further dented investor sentiment, traders said, as risk appetite remained muted across domestic equities.
Extending the previous day’s decline, the 30-share BSE Sensex tumbled 1065.71 points, or 1.28 per cent, to settle at 82180.47. During the session, it slid as much as 1235.60 points, or 1.48 per cent, to touch an intra-day low of 82010.58.
Reflecting the bearish trend in equities, the market capitalisation of BSE-listed firms eroded by ₹9,86,093.96 crore to ₹4,55,82,683.29 crore ($5.01 trillion).
Market breadth remained decisively negative, with 3,503 stocks declining, 780 advancing and 119 remaining unchanged on the BSE.
The 50-share NSE Nifty also ended sharply lower, tanking 353 points, or 1.38 per cent, to close at 25232.50.
“Markets extended their weakness on Tuesday and ended lower amid broad-based selling and weak global cues. Market sentiment remained subdued due to mixed corporate earnings and renewed concerns surrounding geopolitical tensions and global trade developments,” said Ajit Mishra, SVP, research, Religare Broking.
Investor sentiment was further weighed down by escalating global trade tensions and continued foreign capital outflows, according to Ashika Institutional Equities. Concerns resurfaced after US President Donald Trump threatened fresh tariffs on several European nations, reviving fears of renewed global trade disruptions.
“At the same time, sustained selling by foreign portfolio investors added to the downside pressure in domestic equities. Heightened global uncertainty and falling equity markets prompted investors to shift towards safe-haven assets, with gold and silver trading at record highs,” Ashika Institutional Equities said.
For traders, near-term technical levels indicate that weakness could persist.
“As long as the market is trading below 25300/82300 (Nifty/Sensex), a weak sentiment is likely to continue. On the lower side, the market could slip to 25100–25,000/82000–81700.
On the flip side, above 25300/82300, a pullback move could take the market to 25400–25435/82500–82800,” said Shrikant Chouhan, head equity research, Kotak Securities.
The rupee closed at 90.97 on Tuesday.
Global bourses
In Asian markets, South Korea’s Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite and Hong Kong’s Hang Seng indices settled lower, mirroring the cautious global mood.
Markets in Europe were trading more than 1 per cent lower during the session, while US markets were closed on Monday for a holiday.
On the institutional front, foreign institutional investors offloaded equities worth ₹3,262.82 crore on Monday, while domestic institutional investors remained buyers, purchasing stocks worth ₹4,234.30 crore, according to exchange data.
