Indian benchmark indices ended Tuesday's trading session in negative territory, with the BSE Sensex closing 114.19 points lower at 75,200.85 and the NSE Nifty50 declining 31.95 points to settle at 23,618. According to market reports, the decline marked a reversal from earlier session highs when both indices had opened significantly higher. The session was characterized by aggressive derivative unwinding in the final hour that erased much of the day's earlier optimism, making it a weekly expiry session.
The market session began on a positive note with the BSE Sensex opening above 75,600, climbing close to 300 points during early morning trading. As reported by market sources, the NSE Nifty50 opened trading over 23,700, inching up a little more than 50 points around 9:15 AM. However, the indices failed to sustain these gains throughout the trading session, with the rupee hitting a fresh record low of 96.61 against the US dollar and crude oil hovering near $110 a barrel creating significant macro headwinds.
The Nifty IT index surged 3.2% — its third consecutive session of gains — clocking a cumulative rise of nearly 5.7% over two trading sessions. According to market reports, a weaker rupee serves as a direct earnings tailwind for export-heavy technology companies, with institutional investors stepping in with bargain buying after months of heavy corrections in the sector. The Nifty Midcap 100 gained 0.91% and the Smallcap 100 advanced 1.17%, outperforming benchmarks significantly. Realty gained 1.4%, while PSU Bank and Media indices advanced roughly 1% each, though private banking was the primary laggard.
The rupee's slide represents its sixth consecutive session of weakness, driven by persistent dollar demand, elevated crude prices, a widening trade deficit, and a strengthening dollar index. As per Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services, "the underlying macro pressures remain firmly unresolved. The prolonged energy crisis linked to West Asia tensions continues to worsen domestic conditions, with a sharply weaker rupee, rising inflation concerns and elevated crude oil prices collectively reinforcing a broader risk-off environment." A weakening currency, combined with recent hikes in petrol and diesel prices, is stoking imported inflation fears and squeezing corporate margins.
The India VIX declined 5.45% to around 18.55, signalling some cooling of immediate panic, though volatility remains historically elevated. Ajit Mishra, SVP Research, Religare Broking, noted that "the focus should remain on stock selection based on prevailing sectoral trends," adding that the Nifty needs to decisively reclaim the 24,000 mark before a more constructive view can emerge, with immediate support in the 23,250–23,450 zone. Investors are tracking HDFC Bank, where the board is expected to appoint a new chairman before Keki Mistry's interim tenure ends in June 2026, with clarity on leadership seen as critical for long-term investor confidence. Eureka Forbes reported strong Q4 FY26 results with revenue rising 11.6% year-on-year and EBITDA margin hitting a record 13.2%.
