Indian equity benchmarks ended marginally lower on Tuesday as gains in information technology stocks were offset by weakness in banking shares, while investors remained cautious over uncertainty surrounding a possible US-Iran deal. BSE Sensex slipped 114.19 points, or 0.15%, to close at 75,200.85, while NSE Nifty50 fell 31.95 points, or 0.14%, to settle at 23,618. According to reports from CNBC TV18, markets had traded firmly higher earlier in the session before witnessing profit booking in heavyweight financial names during the latter half of trade. The decline came despite broader markets outperforming, with sustained buying in midcaps and information technology shares.
The Nifty Bank index ended 128 points lower at 53,409 after slipping nearly 355 points from intraday highs, as reported by CNBC TV18. Kotak Mahindra Bank emerged among the top drags on the benchmark indices, with the stock falling 2.51% on Tuesday. HDFC Bank and ICICI Bank also ended lower, weighing on the banking index despite the sector's overall resilience. This sector-specific decline contributed significantly to the overall market weakness despite positive performance in other segments.
Despite weakness in frontline indices, broader markets remained strong with the Nifty Midcap 100 rising 0.91% and the Nifty Smallcap 100 gaining 1.17%, as reported by CNBC TV18. Market breadth favoured advances, reflecting sustained investor interest beyond large-cap stocks. This resilience in midcap and small-cap segments indicates continued investor confidence in the broader market ecosystem despite challenges in the banking sector.
Information technology shares extended gains for a third straight session, with the Nifty IT index surging 3.23% on Tuesday, taking its three-session rally to over 7%, according to CNBC TV18. Infosys surged 4.52%, HCL Technologies gained 2.73%, Tech Mahindra climbed 2.42%, and Tata Consultancy Services advanced 2.06%. Eternal Ltd also rose 2.03%. Analysts attributed the rise to bargain buying after the recent correction and support from a stronger dollar, which benefits Indian IT exporters that earn a large share of revenue from the US market. The sustained rally in IT stocks demonstrates continued investor appetite for technology-related investments.
Among other notable movers, Titan Company declined 1.88%, Cement slipped 1.69%, Bharti Airtel dropped 1.40%, and Sun Pharmaceutical Industries fell 1.24%. On the positive side, Angel One jumped 8% while Coforge rose 5% after CLSA identified the company as one of the biggest beneficiaries of the artificial intelligence investment cycle. Voltas and Blue Star advanced amid expectations of rising seasonal demand for air-conditioners, while HPCL climbed over 3% after fuel price hikes. According to Vinod Nair, Head of Research at Geojit Investments, domestic equity indices pared early gains to close in the red, despite initial optimism surrounding a temporary halt in US military operations against Iran. Market focus is increasingly pivoting toward mounting inflationary pressures and concerns over potential earnings downgrades for Q1FY27.
