Mumbai: The benchmark BSE Sensex dropped by 297 points on Tuesday, marking its second consecutive day of losses due to declines in metal, some auto, and pharmaceutical shares, as Asian and European markets exhibited weak trends. After reversing earlier gains, the 30-share BSE Sensex fell by 297.07 points or 0.36 percent, closing at 82,029.98, with 23 of its components declining and seven gaining. During the session, it reached a low of 81,781.62, down by 545.43 points or 0.66 percent. The 50-share NSE Nifty also fell, decreasing by 81.85 points or 0.32 percent to 25,145.50. Analysts noted that although stock markets began the day positively, they could not maintain their momentum due to unfavorable global trends and concerns related to trade.
The sentiment was further impacted by foreign fund outflows. Bajaj Finance was the largest loser among the Sensex stocks, dropping 1.8 percent. Other notable laggards included Tata Motors, TCS, Tata Steel, Bharat Electronics, NTPC, Trent, Asian Paints, and Axis Bank. Conversely, Tech Mahindra, ICICI Bank, Power Grid, Hindustan Unilever, and Reliance Industries managed to record gains. Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, commented that equity markets experienced broad-based profit-booking owing to the absence of fresh domestic triggers, as weak cues from Asian and European peers dampened investor sentiment.
He noted that renewed US-China trade tensions led to a risk-averse atmosphere, prompting a flight to safe-haven assets like gold and US Treasury bonds, while equities faced pressure from escalating global trade uncertainty. Ajit Mishra, SVP of Research at Religare Broking Ltd, stated that stock markets opened positively but could not sustain their early gains, closing slightly lower as trade-related concerns overshadowed favorable domestic signals. The BSE smallcap index decreased by 0.95 percent, and the midcap index fell by 0.74 percent. All sectoral indices ended in the red, with telecommunications suffering the largest drop of 1.39 percent, followed by oil and gas at 1.01 percent, realty at 0.96 percent, metal at 0.95 percent, and services at 0.87 percent.
On the BSE, 2,870 stocks declined, 1,337 advanced, and 127 remained unchanged.