Sensex Falls 500 Points, Nifty Slips Below 25,850 Amid Broad Profit Booking

Market Performance

The Indian stock market turned cautious on Tuesday, with both benchmark indices giving up early gains as investors chose to book profits after a strong start to the week. The move came after Monday’s rally, which had lifted sentiment on hopes of easing US-China trade tensions and steady domestic earnings.

By 12 p.m., the BSE Sensex dropped 516.55 points, or 0.6%, to 84,262.29, while the Nifty 50 slipped below the 25,850 mark to 25,832.80, down 133.25 points or 0.51%. The tone of the market reflected mild caution after the recent uptrend, with traders locking in profits across key sectors.

Top Movers on the Index

The session saw a mix of gains and losses across the Nifty 50 pack.

• Top Gainers: Tata Steel, Hindalco Industries, and Eicher Motors managed to stay in the green.
• Major Laggards: Bajaj Finserv and ICICI Bank fell up to 2%, pulling down financial stocks.

What’s Driving the Market Decline

After multiple sessions of gains, the indices cooled off as several factors weighed on investor sentiment. Here’s a closer look at what led to the pullback:

1. Foreign Institutional Selling (FII Pressure):
   Overseas investors turned net sellers on Monday, offloading equities worth ₹55.58 crore. Persistent FII selling continues to act as a drag on the broader market momentum.
2. Profit Booking Across Sectors:
   The sharp rally earlier in the week prompted traders to take money off the table. Weakness was visible across banking, financial services, realty, FMCG, and IT segments — indicating broad-based profit booking rather than sector-specific weakness.
3. Rupee Weakness:
   The Indian rupee fell 21 paise, settling at ₹88.40 per US dollar. The dip was triggered by stronger dollar demand from importers and firm global crude oil prices. Traders also stayed on edge ahead of the US Federal Reserve’s policy decision expected on Wednesday.
4. Volatility Returns:
   The India VIX — a measure of market volatility — climbed 5% to 12.50, signaling growing caution among traders ahead of the monthly F&O expiry.
5. Nifty Derivatives Expiry:
   The session also coincided with the monthly expiry of Nifty derivatives contracts, adding to intraday volatility as traders adjusted positions.
6. Crude Oil Prices Edge Higher:
   The global benchmark Brent crude was seen trading 0.05% higher at $65.65 per barrel, adding to inflationary concerns and pressuring market sentiment.

Market Sentiment & Broader View

After a steady upmove in the past few sessions, Tuesday’s pause reflected a healthy round of consolidation. While broader sentiment remains supported by domestic earnings and global stability, investors preferred a cautious stance ahead of key global events.

The Sensex Live and Nifty Today movement show how swiftly market tone can shift amid global cues and local profit-taking. Despite the intraday decline, underlying fundamentals of Indian equities remain strong, driven by liquidity, steady macros, and continued institutional interest.

Summary

• Sensex: Down 516.55 pts (0.6%) at 84,262.29
• Nifty 50: Slipped 133.25 pts (0.51%) to 25,832.80
• FII Activity: Net selling worth ₹55.58 crore
• Rupee: Weakened by 21 paise to ₹88.40
• India VIX: Up 5% to 12.50
• Crude Oil: Brent up 0.05% to $65.65/barrel

The market’s mild pullback reflects a mix of profit booking, foreign fund outflows, and global caution ahead of central bank cues. With volatility picking up, traders are watching how the indices stabilize near current levels after the recent upsurge.