Mumbai: Indian equity markets slipped into negative territory on Tuesday after giving a positive start to the session, as sharp selling in information technology stocks and profit booking at higher levels weighed on investor sentiment. The benchmark indices erased their early gains, with the Sensex falling nearly 400 points from the day’s high. The index was trading lower by 186.80 points, or 0.25%, at 74,672.19, while the Nifty declined 46.80 points or 0.2% to 23,367.50 around 11 am. At the opening bell, the Sensex had gained 179.94 points or 0.24%, to touch 75,038.93, while the Nifty climbed 74.7 points or 0.31% to 23,489.
Market weakness was largely driven by selling pressure in IT stocks. The Nifty IT index declined around 1.5%, with major technology companies facing pressure after brokerage firms highlighted concerns over demand conditions and earnings growth outlook. CLSA and Goldman Sachs pointed towards challenges for the IT sector, including weak global economic conditions, geopolitical uncertainties, higher interest rates and inflation concerns. Shares of companies including LTIMindtree and HCL Technologies witnessed losses of up to 4%.
Most Nifty sectoral indices traded lower, while Metal and Realty sectors managed to stay in positive territory. The Nifty Smallcap 100 index slipped 0.13%, whereas the Nifty Midcap 100 remained almost flat.
Crude Oil Prices Add Market Pressure
Rising crude oil prices also impacted investor sentiment. Brent crude, the global oil benchmark, gained 0.8% to trade around USD 101.1 per barrel after declining for four consecutive sessions. Since India imports a significant portion of its crude oil requirements, higher oil prices can increase import costs and put pressure on corporate margins.
Foreign Investors Continue Selling
Foreign Institutional Investors (FIIs) remained cautious, selling equities worth Rs 576.20 crore in the previous session. Continuous foreign fund outflows have remained a key factor influencing market movements.
Investors Book Profits After Recent Rally
The market also witnessed profit booking after a strong recovery in recent sessions. The Sensex had gained 564.03 points or 0.76% on Monday, while the Nifty closed higher by 67.90 points, or 0.29%. Analysts said investors are monitoring global cues, crude oil movement and upcoming corporate earnings for further market direction.
Technical Outlook
According to Ponmudi R, CEO of Enrich Money, the Nifty opened near the 23,454 level and needs to sustain above this zone to continue its recovery towards 23,500-23,600. The immediate support level for the index remains around 23,300 followed by 23,200. A decline below these levels could increase selling pressure, while sustained buying may help the index maintain its recovery momentum.
HDFC Bank Shares Stay in Focus
HDFC Bank shares continued their positive movement, rising nearly 1% in early trade for the second consecutive session. The stock gained 0.9% to Rs 746.50 after rising 1.16% in the previous session. Despite the recent recovery, HDFC Bank shares remain under pressure in 2026, declining significantly compared with broader market performance.
The private sector lender recently submitted two candidates to the Reserve Bank of India for appointment as Managing Director and CEO for a three-year term.