The Indian equity markets witnessed sharp weakness by midday on Tuesday, with the Nifty 50 index declining 165.85 points or 0.69% to 23,937.05 and the S&P BSE Sensex tumbling 524.09 points or 0.68% to 76,569.98 as of 12:35 pm. According to The Hindu BusinessLine, the broader market reflected the weakness significantly, with 2,556 stocks declining against 1,482 advances on the BSE out of 4,232 traded stocks. Market breadth remained near-even with 176 stocks hitting 52-week highs against 36 at 52-week lows, suggesting the damage remained largely concentrated in index heavyweights. The decline was primarily driven by heavy selling in IT stocks after Accenture trimmed its FY26 revenue growth forecast and highlighted revenue risks stemming from West Asia-related challenges. However, the selling pressure intensified in afternoon trade with Nifty 50 falling more than 200 points or 0.95% to trade at 23,800, while the Sensex pulled back more than 700 points or 0.93% to trade at 76,400, as reported by The Financial Express.
The Nifty IT index slumped over 6% to a three-year low after Accenture's guidance cut triggered a sharp sell-off in major IT stocks including Infosys, TCS, and HCLTech. According to The Hindu BusinessLine, TCS fell 3.03% to ₹2,063.40 on volumes of 35.46 lakh shares worth ₹73,821.05 lakhs, while Infosys declined 2.97% to ₹1,033.80 with over 1.09 crore shares changing hands worth ₹1,13,176.93 lakhs - the highest traded value on the Nifty 50. Wipro dropped 2.47% to ₹175.73 on volumes of 1.21 crore shares. The sector decline came despite its strong performance in recent sessions, highlighting the volatile nature of IT stocks and investor caution in the current market environment. Structural fears around AI replacing traditional services and geopolitical headwinds are deepening the sector's pain, with analysts anticipating further moderation and a shift towards M&A and new client acquisition to counter slowing growth prospects. The rout across the tech sector follows a global trend after the artificial intelligence and chipmaking sectors saw significant pause, with technology-heavy Nasdaq 100 Futures tumbling nearly 2% to 30,062.50 points, as reported by The Financial Express.
Metals joined the selloff with Hindalco falling 2.76% to ₹986.20 after opening at ₹999, while Tata Steel declined 2.36% to ₹194.28 on heavy volumes of 1.37 crore shares worth ₹26,862.85 lakhs. However, pharma stocks bucked the broader trend and remained the standout performer of the session. Cipla led gains, rising 2.56% to ₹1,452 with over 37.20 lakh shares traded worth ₹53,831.39 lakhs, while Sun Pharmaceutical advanced 1.23% to ₹1,885.80 on volumes of 15.89 lakh shares. Dr. Reddy's Laboratories gained 0.83% to ₹1,301.40, and Shriram Finance added 0.59% to ₹998.70. The metal stock basket dropped the most among sectoral indices, falling 3.5% as the metal stocks were the other big pocket, seeing significant selling pressure. Vedanta was the worst-hit stock in the Nifty Metal index, declining over 8%, followed by National Aluminium Company, Hindustan Zinc, Jindal Steel, and NMDC. As per The Financial Express, the metal stock basket dropped the most among the sectoral indices, with the decline attributed to declining demand for precious metals as geopolitical tensions in West Asia are coming to an end.
According to SBI Securities, the Nifty now faces a crucial support zone at 23,960–23,980, while resistance lies at 24,210–24,230. A slip below 23,960 could drag the index further to 23,840–23,800. On the options front, meaningful call writing was seen at 24,100 and 24,200 strikes, while the 24,000 put strike holds substantial open interest, followed by the 23,900 strike - suggesting traders are hedging for further downside. The Nifty's advance-decline ratio stood at 26:24, reflecting near-even participation. India's volatility index is seeing a significant increase, rising 6.7% to a level of 13.71, as reported by The Financial Express. On Bank Nifty, the index opened near 57,933 with the 58,000 level acting as immediate resistance, while support is placed at 57,700, below which the index could head towards 57,500–57,400.
The Indian rupee opened nearly flat near ₹94.65–₹94.6 against the dollar, with resistance at ₹94.7–₹94.75. According to The Hindu BusinessLine, COMEX Gold is trading with a weak undertone near the $4,220–$4,240 resistance zone, while MCX Gold opened with a gap down, holding above ₹1,46,500 with resistance at ₹1,48,000–₹1,48,400. MCX Silver slipped to around $63, with a break lower potentially opening the way to $61–$60. MCX Silver opened sharply lower near ₹2,28,000, with resistance at ₹2,30,500–₹2,31,600. The US dollar has strengthened to its highest level in more than a year on expectations of a more hawkish Federal Reserve, with the dollar index inching up to 101.13, its highest level since May 2025. As per the most recent Reuters note, Fed funds futures are pricing in more than an 80% chance of a rate hike by September. The fact that the Middle East conflict is not being totally resolved is also adding to the factors adding to the dollar's strength. Silver declined almost 5% on the back of a strong US dollar, dropping to the lowest point year-to-date, while European mining shares fell 4.5%, tracking declines in precious metal prices.
