Indian stock markets ended their four-day winning streak as the Sensex fell 105 points to close at 78,181, while the Nifty 50 declined 0.13% to end at 24,399 on Tuesday. According to The Economic Times, the benchmarks erased nearly 600 points from their intraday high of 24,531, with the market unable to hold above the crucial 24,500 mark on the weekly Nifty expiry day. The Nifty Midcap 100 fell 0.37% and the Nifty Smallcap 100 declined 0.66%, with declining stocks outnumbering advancers by nearly 2:1. As per SBI Securities, the index failed to sustain above the 24,500 mark, which triggered sharp profit booking in the latter half of the session, with the index forming a small-bodied candle with shadows on both sides, indicating indecisiveness at the current market juncture. The market breadth remained weak with 2,084 stocks declining against 1,191 advancing out of 3,384 stocks that traded on NSE.
Nifty IT emerged as the top-performing sector, rising close to 4%, with Infosys climbing nearly 4%, Tata Consultancy Services gaining around 3%, Tech Mahindra rising 3.4%, and Mphasis advancing about 3%. However, Nifty Realty fell 1.6% and Nifty Metal declined around 1%, dragging the benchmarks lower alongside weakness in energy, pharma and media sectors which ended around 0.7% lower. Among Nifty constituents, Titan Company, Tech Mahindra, HCL Technologies, Titan Company and SBI Life Insurance were the top gainers, while Trent, Adani Enterprises, Bharat Electronics, Adani Ports and Cipla weighed on the benchmark. The broader market underperformed with Nifty Midcap 100 declining 0.4% and Nifty Smallcap 100 falling 0.55%. Among individual stocks, Trent tumbled 12.6% after weaker-than-expected provisional revenue growth in the June quarter, while Kalyan Jewellers dropped 9% despite posting 38% revenue growth, both punished for missing elevated market expectations. On the positive side, Titan surged on strong provisional updates, and Info Edge jumped 13% on billing growth, with market experts noting that "good numbers are not enough anymore. You have to beat the expectations."
The Indian rupee strengthened nearly 45 paise to close at 94.95 against the US dollar, posting its biggest single-day gain in recent sessions as reported by The Hindu BusinessLine. According to Jateen Trivedi, VP Research Analyst at LKP Securities, the rupee strengthened after Saudi Arabia reduced August crude oil prices for Asian buyers, easing concerns over India's import bill. He noted that softer crude prices, improving risk sentiment and short covering supported the domestic currency. However, crude oil prices were mixed with international benchmarks rising over 1% to near $69 per barrel after reports of a fresh attack on a Qatari LNG vessel in the Strait of Hormuz, raising questions over the durability of the late-June ceasefire in the region. Domestic crude futures hovered near ₹6,600, while MCX Gold slipped around 1% to ₹1,45,300, tracking a 0.75% fall in COMEX Gold to around $4,130, weighed down by the firmer rupee and improved risk appetite.
Global headwinds added to the caution, with Asian markets trading lower after Samsung's earnings triggered a 5%-plus fall in South Korea's KOSPI, dragging broader regional sentiment and weighing on Nasdaq futures. According to The Economic Times, US stocks declined sharply on Tuesday, with the S&P 500 slipping and the Nasdaq dropping sharply, weighed by losses in chip stocks amid doubts over the durability of the AI-led rally despite robust Samsung earnings. Nvidia fell 1.8% after Reuters reported Chinese startup DeepSeek is developing its own AI chip, while chip stocks tumbled across Wall Street with the Philadelphia SE Semiconductor index declining 5.5%, hitting a four-week low. European stocks also took a step backwards despite Samsung Electronics forecasting a 19-fold jump in April-June operating profit to 89.4 trillion won ($58.4 billion), as the STOXX 600 slipped 0.16%. Looking ahead, markets will closely watch the FOMC meeting minutes due Wednesday, followed by US initial jobless claims later in the week, for cues on the interest rate outlook and dollar direction. Domestically, TCS results on Thursday will be the first major test of the earnings season and could set the direction for the IT sector and broader market sentiment. Defence and Electronics stocks are also expected to remain in focus — India signed BrahMos missile supply agreements with Indonesia during Prime Minister Modi's Jakarta visit, while the government is set to launch Semicon 2.0 to expand semiconductor incentives. Progress on the India-US interim trade deal and the southwest monsoon will continue to be watched as near-term drivers.
