CHENNAI: The Indian equity market on Tuesday showed a mixed trajectory by the noon trade after an initially optimistic start gave way to selling pressure and caution among investors. When the markets opened in the morning, there was clear optimism. The Nifty 50 index began the session above the 25,800 level and the Sensex was up by a couple of hundred points, reflecting positive sentiment in response to earnings updates and hopes for renewed engagement on trade issues between India and the US.
This early strength was driven by expectations that corporate results and global cues might lift sentiment after a period of volatility.
However, as the morning progressed, the early gains faded and both indices moved into negative territory by midday. The markets encountered resistance and profit-taking, particularly in heavyweight stocks that had earlier supported the rally. Major names, including Reliance Industries, saw declines that offset some of the broader optimism.
The IT sector also contributed to the softer tone, with several large technology firms trading lower amid cautious views on growth prospects and recent earnings trajectories. As a result, the Nifty was trimming its gains and inched slightly below its earlier levels, while the Sensex similarly relinquished its early morning advance. Broader market performance was uneven, with some smaller stocks and sectors showing resilience, but the overall sentiment remained subdued as investors booked profits and reassessed positions.
Contributing to the cautious mood was pressure on the currency and external factors such as geopolitical and tariff-related uncertainties that have been lingering in global markets. The rupee weakened modestly, weighed down by subdued equity performance and delayed developments in fixed income benchmarks, underscoring some of the external headwinds facing domestic markets. Higher crude oil prices also weighed on sentiment, as energy costs and inflation expectations influence risk appetite across asset classes.
Investor behaviour reflected a broader trend of caution. Foreign institutional investors continued to be net sellers of equities, exerting downward pressure on key indices, even as domestic institutional buyers provided some support in pockets. The divergence in participation points to ongoing recalibration of strategies by large investors, who are balancing expectations for corporate earnings with macroeconomic and geopolitical uncertainties.
Technical indicators on the charts suggested a lack of sustained upward momentum. What began as a hopeful advance in early trade faced resistance near key levels, triggering short-term traders and algorithmic strategies to flip into profit-taking mode. This contributed to the broader pullback and left benchmarks navigating a narrow range as traders awaited fresh catalysts in the afternoon session.
Corporate news also played a role in sentiment. While some companies had reported results that beat expectations, the market’s reaction was muted, with investors focusing more on forward guidance and growth outlook than on near-term results. This selective response signalled that the market remains sensitive to growth visibility and technical signals rather than just headline earnings beats.
By noon, the overall picture was one of cautious consolidation. Early optimism had given way to a more measured and careful stance among investors, reflecting the interplay of corporate news, macroeconomic pressures and global risk factors. Market participants were looking to the remainder of the week for clearer direction, particularly as earnings updates unfold and geopolitical developments evolve, shaping medium-term investor confidence and market trends.