Indian stock markets closed flat on Tuesday, as investor sentiment took a hit following the implementation of US trade tariffs on Canada and Mexico. The impact of Canada’s retaliatory tariffs on US goods further added to the cautious mood, leading to marginal declines in benchmark indices.
The Sensex ended the day at 72,989.93, slipping 96 points (0.13%), after fluctuating between 73,033.18 and 72,633.54 during the session. Meanwhile, the Nifty settled at 22,082.65, losing 36.65 points (0.17%), after touching an intraday high of 22,105.05 and a low of 21,964.60.
Despite the overall subdued sentiment, broader markets remained mixed. The Nifty Smallcap100 index rose by 0.69%, while the Nifty Midcap100 managed a slight 0.05% gain, indicating selective buying in smaller stocks.
Out of the 50 Nifty stocks, 28 closed lower, with Bajaj Auto, Hero MotoCorp, Bajaj Finserv, HCL Tech, and Eicher Motors witnessing declines of up to 4.95%. On the flip side, 22 stocks gained, led by Adani Enterprises, State Bank of India (SBI), BPCL, Bharat Electronics, and Shriram Finance, which climbed by up to 3.03%.
Sector-wise, market movements were mixed. PSU Bank, Bank Nifty, financial services, consumer durables, media, metal, oil & gas, and realty indices saw gains of up to 2.37%. However, Nifty Auto, IT, Pharma, and FMCG sectors declined, with losses extending up to 1.31%. The Nifty Private Bank index also saw a minor dip of 0.08%.
Analysts attributed the recent weakness in small and midcap stocks to profit booking after a strong rally, coupled with global market uncertainties.
“The recent decline in small and midcap stocks reflects profit booking following a strong rally, compounded by global market uncertainties,” said Abhishek Jaiswal, Fund Manager at Finavenue. He emphasized that while short-term volatility is expected, India’s strong economic growth and ongoing structural reforms continue to support midcap companies with solid fundamentals.
Jaiswal advised investors to focus on businesses with strong balance sheets and sustainable earnings growth rather than reacting to short-term market fluctuations.
-IANS
