CHENNAI: On Tuesday, Indian equity markets witnessed a broad-based sell-off, with both benchmark indices — the BSE Sensex and NSE Nifty50 — ending in the red. Investor sentiment appeared cautious, as losses were recorded across nearly all major sectors and segments.
The Sensex closed at 80,641.07, down 155.77 points or 0.19%, while the Nifty50 settled at 24,379.60, declining by 81.55 points or 0.33%.
Despite the overall market weakness, at least 10 Sensex constituents managed to post gains. Notable performers included Bharti Airtel, Tata Steel, Mahindra & Mahindra, Hindustan Unilever, and Nestle India, which rose by up to 1.66%.
Conversely, several heavyweight stocks dragged the indices lower. Eternal (formerly Zomato), SBI, Tata Motors, NTPC, and Adani Ports led the decline, falling between 1.94% and 3.15%.
Broader Market Performance
The correction was more pronounced in the broader markets, reflecting heightened investor nervousness. The Nifty Midcap100 dropped by 2.27%, while the Nifty Smallcap100 declined by 2.50%, indicating increased risk aversion, particularly in smaller and more volatile stocks.
Sectoral Indices Overview
Among sectoral indices, only Nifty Auto defied the market trend to end marginally higher. All other NSE sectoral indices closed in the red, underscoring the breadth of the sell-off.
The Nifty PSU Bank index was the worst performer, plunging 4.84%, with all 12 of its constituents ending lower. The decline was led by:
Bank of Baroda: -10.91%
Union Bank of India: -6.33%
Bank of India: -6.19%
The Nifty Realty index also declined sharply, losing 3.58%, dragged down by:
Godrej Properties: -6.36%
Sobha: -4.96%
Rising Market Volatility
The India VIX, a measure of market volatility and investor fear, rose by 3.58% to close at 19, indicating increased caution and expectations of heightened price swings in the near term.
Outlook
The steep decline in PSU banks and real estate stocks points to a deepening risk-off sentiment, likely influenced by global headwinds, stretched valuations, or macroeconomic uncertainties. The uptick in volatility and broad-based weakness may encourage a more defensive approach from investors in the near term.