Sensex Nifty Dips: After registering a record rally on Monday, domestic benchmark equity indices, Sensex and Nifty, slipped over 1 per cent on Tuesday, due to profit booking at higher levels.
The BSE’s Sensex tanked 1.55 per cent, or 1,281.68 points, to end at 81,148.22. The Nifty lost 1.39 per cent, or 346.35 points, to finish at 24,578.35. On Monday, the Sensex and the Nifty rose 4 per cent, marking their largest single-day gain in four years, aided by India-Pakistan ceasefire and the US-China trade deal.
“The domestic market witnessed profit booking today, following yesterday’s sharp rally. The relief-driven surge—fuelled by easing global and domestic risks, including a reduction in trade war tensions and Indo-Pak geopolitical stress—appears to be taking a breather,” said Vinod Nair, Head of Research, Geojit Investments Ltd.
Profit-taking was evident across the board, with IT, FMCG, and auto sectors emerging as the top losers. In contrast, stocks from PSU banking, pharma, and the defense space managed to edge higher. The Nifty IT, which rallied 7 per cent on Monday, lost 2.42 per cent on Tuesday, while the Nifty FMCG was down 1.34 per cent. The Nifty Pharma gained 1.22 per cent.
The NSE companies that lost the most included Infosys (3.63 per cent), Eternal Ltd (3.34 per cent), Power Grid Corporation (3.19 per cent), HCL Technologies (3.02 per cent) and Tata Consultancy Services (2.83 per cent).
The broader markets showed a mixed trend, with the small-cap index ending in the green, while the mid-cap index closed nearly unchanged. Nifty Smallcap 100 rose 0.81 per cent and Nifty Midcap 100 ended 0.19 per cent up.
According to Nair, the consolidation in the market is primarily affecting large-cap stocks, while mid- and small-cap segments continue to gain traction. This divergence is expected to persist, supported by broad-based earnings improvements reflected in Q4 results so far.
Story continues below this ad
“Looking ahead, there is increasing optimism around FY26 earnings growth, underpinned by supportive fiscal and monetary policies, a rebound in external demand, a favorable monsoon outlook, and declining inflation and interest rates. These factors collectively suggest that midcaps are well-positioned to catch up and potentially outperform in the coming quarters,” Nair said.
Religare Broking Ltd Senior Vice President (Research), Ajit Mishra said the dip in Nifty reflects caution among participants despite easing geopolitical tensions and stable global cues.
“However, we expect the overall tone to remain positive, given the noticeable support in the 24,400–24,600 zone. The focus should remain on identifying key sectors and themes showing relative strength and using intermediate pauses to accumulate quality stocks,” Mishra said.