Indian equity markets ended lower in a volatile session on Tuesday as traders rolled over positions ahead of the weekly expiry. After a firm start, selling intensified in the second half, dragging the benchmarks into the red amid weakness in information technology, metal, banking, and FMCG stocks.

The 30-share BSE Sensex slipped 519.34 points, or 0.62%, to close at 83,459.15, while the NSE Nifty50 declined 165.70 points, or 0.64%, to settle at 25,597.65. Broader indices also mirrored the weakness, with the Nifty Midcap 100 down 0.42% and the Nifty SmallCap 100 falling 0.82%.

The top five losers on the Sensex pack were Power Grid, Tata Motors, Tata Steel, Maruti Suzuki, and Eternal (Zomato). On the other hand, Titan, Bharti Airtel, Bajaj Finance, Mahindra & Mahindra, and SBI were among notable gainers.

Sectorally, all indices closed in negative terrain, barring Nifty consumer durables, which climbed 0.39%. The Nifty metal was the worst performer, falling 1.44%, followed by IT (0.86%) and auto (0.86%).

“The markets edged lower on the weekly expiry day, with the Nifty slipping 0.7% to close near the day’s low,” said Ajit Mishra, SVP – Research, Religare Broking Ltd. “Profit-taking across heavyweight sectors dampened sentiment, while risk appetite remained subdued amid weak global cues and inconsistent FII flows. Technically, a sustained move below the 20-day EMA could extend the correction toward 25,400, while 25,800 may act as an immediate hurdle.”

According to Vinod Nair, Head of Research, Geojit Financial Services, investor sentiment remained subdued ahead of the holiday-shortened week. “FIIs extended their selling streak for the fourth consecutive session, as rising U.S. bond yields and waning expectations of a near-term Fed rate cut curtailed risk appetite.”

However, India’s macro fundamentals remain robust, supported by a strong manufacturing PMI and resilient GST collections, which may sustain earnings momentum going forward, Nair added.

Shrikant Chouhan, Head of Equity Research, Kotak Securities, said sentiment will remain weak as long as the Nifty and Sensex trade below 25,700 and 83,750, respectively. “Further weakness could drag the market to 25,400/82,800 levels, while a close above 25,700 may trigger a rebound toward 25,875/84,400,” he noted.

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