Indian stock indices settled marginally lower on Tuesday due to subdued market sentiment and profit booking by investors.
The Sensex declined 250.48 points, or 0.30 per cent, to close at 83,627.69, while the Nifty slipped 57.95 points, or 0.22 per cent, to 25,732.30.
Market action reflected the interplay between earnings-related reactions and global uncertainty, said Ajit Mishra, SVP (Research), Religare Broking Ltd.
“Early optimism was supported by encouraging IT earnings and signs of progress in India–US trade discussions, which lifted sentiment in the first half. However, the lack of follow-through and fresh selling in heavyweight stocks across sectors capped the upside. Ongoing geopolitical and global trade concerns also continued to weigh on risk appetite, keeping trading largely stock-specific,” Mishra said.
Vinod Nair, Head of Research at Geojit Investments Limited, said domestic equities came under pressure due to renewed concerns over potential US tariffs on countries trading with Iran, which overshadowed the initial optimism triggered by the newly appointed US ambassador’s positive remarks on the trade deal.
“Investor sentiment remained cautious amid the rupee’s weakness, rising crude prices, higher US bond yields and persistent FII outflows. On the positive side, India’s December CPI remained within the RBI’s target range, reinforcing expectations of future rate cuts. However, the Q3 earnings season began on a subdued note, with lacklustre results from a leading IT major. Profit booking was seen across most sectors, although small-cap stocks posted notable gains,” Nair added.
Ponmudi R, CEO of Enrich Money, a SEBI-registered online trading and wealth-tech firm, also said profit booking, global tariff-related concerns and mixed reactions to Q3 earnings weighed on the indices.
The Sensex and Nifty have declined about 2 per cent each so far in 2026.
In 2025, the Sensex and Nifty rose by 8–10 per cent, lower than recent-year trends.
Market participants remained cautious, with experts pointing to low foreign investor participation. Foreign portfolio investors were net sellers in India in 2025, data showed. Overall, Indian equity markets have remained choppy in recent months, except for occasional bullish sessions, as investors remained uncertain about the India–US trade deal, under which the United States has imposed a 50 per cent tariff on Indian goods.
In 2024, the Sensex and Nifty gained about 9–10 per cent each. In 2023, both indices rose 16–17 per cent, while in 2022 they gained around 3 per cent. (ANI)
