Sensex Slides 533 Points as Rupee Weakens; What’s Next for Markets?
Sensex Slides 533 Points as Rupee Weakens; What’s Next for Markets?
Sensex tumbles 533 points while Nifty dips below 25,900 as FII outflows and currency pressures cloud the outlook.
Domestic equity benchmarks extended their retreat for a second straight session on Tuesday as foreign investor outflows, a weakening rupee, and uncertainty over a potential US–India trade pact weighed on sentiment. The Sensex closed at 84,679.86, down 533.50 points or 0.63%, while the Nifty50 slipped to 25,860.10, down 167.20 points or 0.64%.
Five stocks led the downside: Axis Bank, Reliance Industries, Eternal, Infosys and HDFC Bank accounted for a sizable portion of the losses on the index. Axis Bank emerged as the top loser, slipping 5.03% to Rs 1,219.65, followed by Eternal with a 4.69% drop. Other notable laggards included HCL Technologies, Bajaj Finserv, Tata Steel and UltraTech Cement as they declined modestly.
Among sectoral movers, the BSE Bankex dipped about 1.03% to finish at 66,024.80, while the BSE IT index shed around 0.90% to settle at 36,783.35. Overall, out of 4,328 actively traded BSE stocks, 1,649 closed higher, 2,517 declined, and 162 remained unchanged. During the session, 100 stocks touched their 52-week highs, while 135 slipped to 52-week lows. Additionally, 187 scrips hit upper circuits, and 144 were locked in lower circuits.
Vinod Nair, Head of Research at Geojit Investments Limited, noted that domestic equities slipped into negative territory as the rupee weakened to fresh record lows, pressured by sustained foreign institutional outflows and a muted global risk environment. He pointed out that small and mid-caps lagged large caps, with IT, metals, banking, and realty leading losses, while consumption stocks offered limited support. Volatility is expected to remain elevated amid currency fluctuations and uncertainty over foreign inflows. Progress on the US–India trade deal and rupee stabilization will be critical, while softer commodity prices could add some relief to the softening sentiment.
