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The recent performance of equity benchmarks has been a cause for concern among investors, as markets continue to grapple with a series of challenges. On Tuesday, the Sensex closed at 72,989.93, marking a decline of 96.01 points or 0.13 percent, while the Nifty fell by 36.65 points or 0.17 percent, settling at 22,082.65. This marks the tenth consecutive session of losses, highlighting a troubling trend in market sentiment.
Impact of global trade tensions
Markets opened on a weak note, primarily influenced by escalating trade tensions following the United States’ confirmation of tariffs on imports from China, Canada, and Mexico. These developments have prompted retaliatory measures, further complicating the global trade landscape. Investors are increasingly wary, as the implications of these tariffs could ripple through various sectors, affecting profitability and growth prospects.
Foreign institutional investors’ selling pressure
Adding to the market’s woes is the continued selling pressure from foreign institutional investors (FIIs), with outflows nearing $13 billion in 2025. This significant withdrawal of capital has dampened investor sentiment, leading to a cautious approach in trading. The persistent selling trend raises concerns about the overall health of the market and its ability to recover in the near term.
Sector performance and notable stocks
Despite the overarching negative sentiment, some stocks have managed to stand out. The State Bank of India (SBIN) led the gains, surging 3.02 percent to ₹716.15, driven by strong quarterly results and an optimistic outlook in the banking sector. Similarly, Zomato gained 2.45 percent to ₹227.50, buoyed by increased investor confidence in the food delivery space. On the other hand, Bajaj Finserv emerged as the biggest laggard, dropping 2.70 percent to ₹1,788.60 on profit-booking after a recent rally.
Other notable movements included Tata Consultancy Services (TCS), which added 1.03 percent to close at ₹3,532.65 amid sustained demand for IT services, and Adani Ports, which rose 0.63 percent to ₹1,059.35. However, the overall market sentiment remained subdued, with weak global cues and persistent selling by foreign investors continuing to weigh heavily on investor confidence.
As analysts suggest, volatility may persist in the coming sessions, driven by economic uncertainties and upcoming policy announcements. Investors are advised to remain vigilant and consider the potential impacts of global developments on their portfolios.