Benchmark indices SENSEX and NIFTY50 ended Tuesday's volatile session on a mixed note, with SENSEX dipping 12.99 points to settle at 76,944.28, while NIFTY50 fell 24.60 points to 24,055.80. According to latest reports, all benchmark indices ended above their 3:15 pm levels, with the rupee strengthening to a two-month high, closing at ₹94.94 per US dollar compared with Monday's close of ₹95.22. The rupee appreciated 28 paise during the session, providing support to market sentiment despite mixed domestic market performance. The indices managed to stay above the key 24,000 support zone despite swings through the session, reflecting a mixed market where gains in select heavyweight stocks helped offset pressure across several sectors.
The rupee surged to a two-month high against the U.S. dollar on Tuesday, powered by aggressive central bank intervention and supported by flow-related dollar offers from foreign banks. As per The Hindu, the currency gained 28 paise to close at ₹94.94 (provisional) against the U.S. dollar, supported by robust domestic growth, controlled fiscal slippage and portfolio-related inflows. The Reserve Bank of India, which has been a heavy presence in the forex market in recent sessions, sold dollars again through state-run banks, propelling the rupee higher even as Asian peers fell between 0.2% and 5.2%. At the interbank foreign exchange market, the rupee opened at 95.06 and touched an intraday high of 94.79 and a low of 95.10 during the session, with the currency showing resilience despite global uncertainties. Recent MSCI-linked inflows are offering temporary support to the rupee, according to forex traders, while foreign institutional investors offloaded equities worth ₹7,985.88 crore on a net basis on Monday, despite FPIs investing around $3.1 billion in August, their strongest monthly inflow in 23 months.
Sectoral indices traded mixed, with auto, sugar, aviation and select Adani stocks seeing sharp moves during the volatile session. According to market reports, Maruti Suzuki emerged as the top Nifty loser after reporting August sales that came in below estimates, with the stock remaining under pressure following the sales update. Bajaj Auto gained nearly 2% after reporting strong August sales, making the auto space a mixed pocket of the market. Reliance Industries extended its recent gains and rose nearly 2%, even as the broader market remained weak in parts. Adani Group stocks also ended higher, with Adani Ports gaining more than 3%, while the aviation sector came under pressure with IndiGo falling nearly 4% after a hike in jet fuel prices raised concerns around operating costs.
Commodity-linked stocks saw significant moves, with sugar stocks falling as much as 6% after the government reduced the stock-holding limit, adding pressure to the sector. Brent crude rose 2% higher at $92.27 per barrel in futures trade, with Asian Paints and BPCL falling as much as 4% amid rising oil prices. The wires and cables space was also under pressure, with KEI Industries falling to a 17-month low and Havells declining 6% after UltraTech Cement's entry into the wire segment raised concerns around intensifying competition. Market breadth remained weak despite the gains in the headline indices, with the advance-decline ratio standing at 1:2, indicating that declines outnumbered advances by a significant margin.
ITC emerged as the top Nifty gainer, while Happiest Minds Technologies fell more than 10% following the announcement of the ITC-Happiest Minds deal, making it one of the day's notable decliners. Godrej Agrovet jumped more than 6% after a positive brokerage note, while Graphite India gained more than 4% after GrafTech announced a cut in graphite electrode capacity. EPL slipped more than 8% after promoter Epsilon Bidco sold its entire stake in the company, and Ujjivan Small Finance Bank also fell more than 5% after its Managing Director and CEO sought early retirement. Milky Mist Dairy continued its strong performance, rallying 10% as investors reacted to the company's strong April to June quarter earnings report for FY27, with profits rising nearly 10-fold.
India's economy grew at a faster-than-expected 7.8% in the April-June quarter, showing resilience in the face of concerns that the war in Iran and resulting global economic uncertainty could weigh on growth. According to market reports, the central government's fiscal deficit for 2026-27 stood at 26.8% of the full-year target at the end of July, according to data released by the Controller General of Accounts (CGA) on Monday. The deficit was at 29.9% of Budget Estimates (BE) of 2025-26 for the first four months of the previous financial year. Foreign institutional investors offloaded equities worth ₹7,985.88 crore on a net basis on Monday, despite FPIs investing around $3.1 billion in August, their strongest monthly inflow in 23 months. FPIs remain net sellers of around $24.6 billion so far in 2026, though they achieved the second consecutive month of net buying in August.
