Market closing today: Sensex, Nifty slip as Fed jitters and Middle East tensions spook investors; IT bucks trend

The benchmark indices slipped into the red on Tuesday, weighed down by cautious investor sentiment ahead of the U.S. Federal Reserve’s policy decision and rising geopolitical tensions in the Middle East.

The Nifty50 fell 93.10 points or 0.37% to close at 24,853.40, while the BSE Sensex declined 212.85 points or 0.26% to settle at 81,583.30.

The market breadth remained negative throughout the session. On the Nifty50, only 11 stocks ended in the green. Tech Mahindra was the top gainer, rising 1.66%, while the other advancing stocks saw only marginal gains. On the downside, eight constituents—including Cipla, Shriram Finance, ONGC, Sun Pharma, Tata Motors, Dr Reddy’s Labs, Adani Enterprises, and Eternal—fell as much as 2% each.

In the Sensex pack, just 9 of the 30 constituents closed higher, while 21 ended in the red. Notably, 12 of them recorded declines of almost or over 1%, reflecting broad-based selling pressure.

Sectorally, the mood was subdued across the board, with Pharma, Metal, Manufacturing, Consumer Durables, Oil & Gas, Media, PSU Bank, Realty, PSE, and Auto sectors all slipping over 1%. The IT sector remained the only bright spot, buoyed by a stronger U.S. dollar and optimism ahead of the Fed’s decision.

“The markets remained lacklustre and ended nearly half a per cent lower, continuing the ongoing consolidation phase,” said Ajit Mishra, SVP–Research, Religare Broking Ltd.

“Barring the IT sector, all key indices edged lower, with pharma, metal, and realty among the top losers. Following the recent rebound, the broader indices also witnessed profit-taking and declined by over half a per cent each. In the absence of any major domestic events, global cues—such as updates on ongoing geopolitical tensions and the outcome of the FOMC meeting—will guide the market trend and are likely to keep volatility elevated. Amid this backdrop, participants should maintain a stock-specific trading approach while managing position sizes prudently,” Mishra added.

Vinod Nair, Head of Research at Geojit Financial Services, attributed the weakness to growing geopolitical uncertainty. “The benchmark equity index experienced moderate losses amid rising risk of an escalation of conflicts in the Middle East. This uncertainty pushed Brent crude prices higher—an unfavourable development for India, given its heavy reliance on oil imports,” he said.

On the currency front, the rupee traded weak at 86.22, down 0.18 against the U.S. dollar.

“The rupee traded weak as rising risk sentiment from escalating Israel-Iran tensions weighed on the currency. Weakness in capital markets signalled potential FII outflows, adding to rupee pressure. Additionally, crude oil prices rose amid concerns that tensions near the Strait of Hormuz may disrupt supply, further dampening rupee sentiment. The trading range for the rupee is expected to be between 85.75 and 86.55,” said Jateen Trivedi, VP-Commodity and Currency Research at LKP Securities.