Benchmarks dropped on Tuesday, interrupting a three-day gain, driven by renewed US-China trade tensions and profit-taking at elevated levels, despite retail inflation reaching its lowest since 2017 at 1.54% in September.
The BSE Sensex declined by 297.07 points, or 0.36%, closing at 82,029.98 after an opening of 82,404.54. It fluctuated between a high of 82,573.37 and a low of 81,781.62. The Nifty 50 fell 81.85 points, or 0.32%, to settle at 25,145.50, having opened at 25,277.55 and recorded an intraday high of 25,310.35 and a low of 25,086.45.
“Muted starts to the ongoing Q2 results and weaker-than-expected inflation data raised concerns about slow demand, intensifying profit booking,” stated Vinod Nair, Head of Research at Geojit Investments Limited. “Mid and small-cap stocks suffered more than large caps, as sectoral losses were broadly spread. While short-term volatility is anticipated, the market remains in a secure zone medium-term, with expectations of rising demand in the second half of FY26.”
Market breadth was negative, with 2,870 stocks declining against 1,337 advancers on the BSE, while 127 stocks remained unchanged. Out of 4,334 stocks traded, 133 reached 52-week highs and 153 hit 52-week lows. Additionally, 215 stocks hit upper circuit limits while 175 reached lower circuit limits.
Max Healthcare was the top gainer on the Nifty 50, up 1.42% to ₹1,159.50, followed by Tech Mahindra, which gained 1.24% to ₹1,468.90. Wipro advanced by 1.09% to ₹247.80, Apollo Hospitals climbed 1.06% to ₹7,752, and Bajaj Auto rose 0.39% to ₹9,101.
Conversely, Dr Reddy’s Laboratories faced the largest drop, falling 2.17% to ₹1,235, followed by Tata Steel, which dropped 2.14% to ₹169.32, and Bajaj Finance, which decreased 1.90% to ₹1,017. Bharat Electronics declined 1.77% to ₹402.15, and Trent slipped 1.66% to ₹4,604.
Broader market performance was disappointing, with the Nifty Midcap 100 down 0.75% to 58,324.40 and the Nifty Smallcap 100 down 0.89%. Sector indices mostly ended lower, with PSU Banks and Consumer Durables leading the declines, each falling over 1%. The Nifty Next 50 decreased by 0.53% to 68,207.85, while the Nifty Financial Services fell 0.21% to 26,828.30, and the Nifty Bank decreased by 0.23% to 56,496.45.
“Equity markets faced widespread profit booking due to a lack of fresh domestic triggers, exacerbated by negative signals from Asian and European markets,” remarked Ponmudi R, CEO of Enrich Money. “Rekindled US-China trade tensions increased risk aversion, directing investors towards safe-haven assets like gold and U.S. Treasury bonds, while equities faced pressure amid escalating global trade uncertainties.”
The rupee traded lower, depreciating by 0.10 paise to settle at 88.76 against the dollar, affected by the weakness in domestic equity markets and rising commodity prices, particularly for gold and silver.
“The upcoming U.S. CPI data will be pivotal in influencing dollar and rupee trajectories,” noted Jateen Trivedi, VP Research Analyst at LKP Securities. “The rupee is anticipated to move within the range of 88.45–89.25.”
Foreign institutional investors shifted to net sellers after four days of buying, selling equities worth ₹240 crore on Monday, according to Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services.
Technical analysts identified bearish trends in the charts. Nilesh Jain, Head of Technical and Derivatives Research at Centrum Broking, stated, “The Nifty index encountered resistance around the 25,300 mark, experiencing selling pressure from this zone. It formed a bearish candle on the daily chart, resembling a bearish engulfing pattern. Nonetheless, the index found support near its 21-DMA at 25,060 and rebounded well above 25,100.”
Markets are expected to remain range-bound in the near term, with critical resistance at 25,300 and support at 25,000. Ongoing volatility is likely as investors await key Q2 FY26 earnings results, including those from Axis Bank, HDFC Life, HDFC AMC, L&T Finance, HDB Financial, and Angel One scheduled for Wednesday.
Published on October 14, 2025
