Sensex settled at 85,138.27, down 503.63 points or 0.59 per cent. The 30-share index started the session lower at 85,325.51 against last sessions closing of 85,641.90. The index declined further amid selling in banking, IT, and other heavyweights, touching an intra-day low at 85,053.0.

Indian Stock Market Settles Lower Amid Profit Booking, FII Selling

Mumbai Equity Indices End Lower Amid Profit Booking and FII Outflow

The domestic equity indices closed the session lower on Tuesday due to profit booking, FII outflow, and concerns ahead of the RBI's key policy meet.

Sensex Settles at 85,138.27

Down 503.63 points or 0.59 per cent
Started the session lower at 85,325.51
Declined further amid selling in banking, IT, and other heavyweights
Touched an intra-day low at 85,053.0

Nifty Closes at 26,032.20

Down 143.55 points or 0.55 per cent

Analysts attributed the decline to domestic markets witnessing profit booking amid worries over the weakening rupee and persistent FII outflows.

Expert Insights

"Domestic markets continued to witness profit booking amid worries over the weakening rupee and persistent FII outflows. Meanwhile, the NSE’s sectoral index overhaul in line with SEBI regulations led to corrections in major banking counters," said analysts.

In the near term, fading expectations of an RBI rate cut owing to strong GDP data and the uncertainty around US-India trade discussions may keep investors on edge, the analysts added.

Key Gainers and Losers

Asian Paint: Ended higher
Bharti Airtel: Settled higher
Maruti Suzuki: Closed higher
Bajaj Finance: Settled higher
Hindustan Unilever: Closed higher

ICICI Bank: Closed in the negative territory
Axis Bank: Ended lower
HDFC Bank: Closed in the negative territory
BEL: Closed in the negative territory
L&T: Ended lower

Sectoral Indices

Nifty Fin Services: Fell 249 points or 0.10 per cent
Nifty Bank: Slipped 407 points or 0.68 per cent
Nifty Auto: Dipped 13 points or 0.05 per cent
Nifty FMCG: Closed 109 points or 0.20 per cent lower

Broader Indices

Nifty Smallcap 100: Fell 98 points or 0.55 per cent
Nifty Midcap 100: Dipped 132 points or 0.22 per cent
Nifty 100: Ended the session 126 points or 0.47 per cent higher

"Most sectors closed in the red, with private banks and financial services leading the decline, down 0.7 per cent and 0.8 per cent respectively. In contrast, the PSU Bank index gained 0.5 per cent, marking its second consecutive day of gains," said Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.

Rate-Sensitive Sectors

Rate-sensitive sectors — including Auto, Realty and Consumer Durables — saw profit booking amid cautious market sentiment.

Auto Sector Performance

Monthly auto volumes for November exceeded market expectations, with wholesales showing strong post-festive growth across segments, supported by festive order backlogs and normalisation of dealer inventory, Khemka added.