Indian equity markets ended lower on Tuesday as selling pressure in information technology stocks weighed on benchmarks, with Nifty closing below the 23,900 mark at 23,865.75, declining 80.50 points or 0.34%. The Sensex settled at 76,478.67, down 249.70 points or 0.33%, extending losses for a second consecutive session. According to Moneycontrol, the Nifty oscillated within the 23,850–24,050 range during the session as the NSE F&O monthly expiry took place, with sentiment remaining slightly negative. The market found support at the 50EMA on the daily timeframe, though the daily RSI has entered a bearish crossover, indicating weakening momentum. The broader indices outperformed with the BSE 150 MidCap Index jumping 0.45% and BSE 250 SmallCap Index rallying 0.51%, while the market breadth was positive with 2,349 shares rising and 1,884 shares falling on the BSE. Despite Tuesday's decline, Indian benchmarks posted monthly gains in June as lower oil prices and RBI measures provided crucial support, with ten of the 16 major sectors advancing during the month.
Banking stocks emerged as the primary driver of monthly market performance, with the sector leading gains after the Reserve Bank of India extended a subsidised forex swap facility for lenders' overseas borrowings and allowed banks to lend to non-residents against foreign-currency deposits. As reported by The Times of India, banks, private banks, public sector banks and financials rose 6.1%, 6.1%, 4.1% and 4.7% respectively during June. According to Shriram Life Insurance president Ajit Banerjee, "The combination of lower crude, rupee stability and measures to draw foreign inflows has improved sentiment and liquidity," adding that markets should look better from the second half if no new risks emerge. The positive momentum in banking stocks helped offset the weakness in IT and other sectors, demonstrating the market's resilience despite global uncertainties.
Information technology stocks emerged as the biggest drag on market performance, with the Nifty IT Index plunging 2.73% on Tuesday and falling 9.6% in June as rising U.S. inflation fuelled expectations of Federal Reserve rate hikes later in 2026. Heavyweights TCS (down 3.09%), Infosys (down 2.96%), and ICICI Bank (down 0.55%) were major Nifty drags today. The sector's decline was attributed to Accenture's weak demand forecast and AI disruption fears, with concerns over client spending patterns amid global economic uncertainties. Despite the decline, gains in automobile, consumer durable, and realty stocks helped cushion losses, with strong buying in quality stocks preventing a sharper correction.
Among sectors, IT index fell 2.5%, FMCG down 0.4%, while PSU Bank and media fell 0.7% each, on the other hand, consumer durable and realty indices rose more than 1% each. The Nifty Pharma index gained 0.39% and emerged as the best-performing sector, while nearly 160 stocks touched their 52-week high on the BSE, including Capri Global, Gland, Ather Energy, GMR Airports, Gujarat Fluorochemicals, Phoenix Mills, Krishna Institute, Nuvama Wealth, Radico Khaitan, Caplin Labs, Federal Bank, Welspun Corp, Zydus Wellness, ACME Solar, Honasa Consumer, Sai Life Sciences, Aditya Infotech, Zydus Life, and Anand Rathi*. Among individual stocks, Maruti Suzuki emerged as a standout performer, jumping 5.24% after Jefferies upgraded its rating to 'buy' and raised the target price to ₹16,500, while Eicher Motors declined 4.38% after the Delhi government approved the EV Policy 2026-2030, effective July 1. Broader small-caps and mid-caps rose 4% and 0.1% respectively, with IndiGo jumping 21.9% this month helped by sliding fuel prices.
The Indian rupee edged higher against the dollar, hovering at 94.6525 compared with its close of 94.5100 during the previous trading session. As reported by Moneycontrol, Brent crude for July 2026 settlement rose 10 cents or 0.14% to $73.25 a barrel, having dropped 42% from its April peak of $126.4, easing pressure on India's current account deficit and inflation outlook. The decline in oil prices provided relief to the broader market and helped support the banking sector's performance, as lower crude costs improve the liquidity position of lenders. However, U.S. inflation gauges jumped, fuelling expectations that the Federal Reserve could raise rates later in 2026, which continues to weigh on IT and other sectors dependent on global demand. Looking ahead, the market is expected to remain range-bound and driven by global news, with Q1 FY27 earnings season, monsoon progress, and foreign investor flows being key factors influencing market direction.
