Sensex and Nifty News: Markets Slide on Weak Global Cues and Investor Caution

Market Performance

Indian equity markets faced selling pressure in the final hours of trade on Tuesday, with Sensex and Nifty reversing early gains amid weak global sentiment and cautious trading ahead of key economic data releases.

• Sensex: Opened strong and touched the day’s high of 80,997.67 (up 394 points / 0.48%), but ended at 80,235.59, down 368.48 points or 0.46%.
• Nifty 50: Rose to an intraday high of 24,702.60 (up 117.55 points / 0.47%) before slipping below the 24,500 mark.

Market breadth remained mixed with 1,945 stocks advancing, 1,493 declining, and 134 unchanged.

Major losers included Bajaj Finance, Grasim Industries, ETERNAL, Bharat Electronics, and Hindalco Industries, each falling up to 2%.

Key Reasons for Market Decline

1. Geopolitical Caution Ahead of Trump–Putin Meeting

Investors remained watchful ahead of the scheduled August 15 meeting between US President Donald Trump and Russian President Vladimir Putin in Alaska. While the 90-day US–China trade truce provided short-term support to IT stocks, broader market sentiment stayed muted until geopolitical clarity emerges.

2. Awaiting Key Inflation Data

Traders awaited India’s July retail inflation data (to be released post-market hours) and US CPI data later in the day. The latter is expected to influence the US Federal Reserve’s interest rate outlook.

3. Foreign Institutional Investor (FII) Selling

Foreign investors sold equities worth ₹1,202.65 crore on Monday, intensifying the pressure on the markets.

4. Rising Crude Oil Prices

Brent crude futures climbed 0.33% to $66.85 per barrel, sparking concerns over India’s import bill and inflationary trends.

5. Increase in Market Volatility (India VIX)

The India VIX index, a measure of expected market volatility, rose over 1% to 12.35, indicating higher investor nervousness.

6. Weak Global Market Sentiment

Key Asian indices like Kospi and Hang Seng traded lower, while US markets closed in the red on Monday, reinforcing a risk-off mood.

Summary of the Article

The Sensex and Nifty ended lower after early gains, as a mix of weak global cues, rising crude prices, FII selling, and cautious trading ahead of key inflation data kept investors on edge. With the geopolitical backdrop dominated by the upcoming Trump–Putin meeting and volatility ticking higher, market participants preferred to stay defensive.