Sensex, Nifty end flat after volatile session as banks, autos and steel stocks rise; FMCG, IT under pressure

The Indian equity market ended flat with a negative bias on Tuesday, as gains in financials, autos and metals were offset by losses in FMCG, IT and select heavyweight stocks. Investors stayed cautious through a volatile session marked by currency weakness, FII outflows and global policy concerns, even as selective buying in large banks, steelmakers and auto counters provided support.

Sensex, Nifty today

At the close, the Sensex was down 58 points or 0.07 percent at 82,102, while the Nifty 50 slipped 33 points or 0.13 percent to 25,170. Market breadth on the NSE remained weak, with 1,751 stocks advancing against 2,216 declining and 146 unchanged, reflecting broader selling pressure despite selective gains in large-cap names.

Top gainers and losers today

Among Nifty gainers, IndusInd Bank stock surged 2.9 percent, JSW Steel rose 2.4 percent, Axis Bank 2.3 percent, Bajaj Finance 1.9 percent and SBI 1.8 percent. Adani Enterprises and Maruti Suzuki gained 1.8 percent each, while Kotak Mahindra Bank, M&M and NTPC also closed higher.

On the downside, Trent fell 2.4 percent, Tech Mahindra 2.2 percent, SBI Life Insurance 2.1 percent, HUL 1.8 percent, UltraTech Cement 1.6 percent, HDFC Life 1.6 percent, Nestle India 1.5 percent, Asian Paints 1.4 percent, while Hero MotoCorp and Cipla slipped around 1 percent.

Sectoral performance

The Nifty Metal index gained 1 percent, buoyed by Nomura’s bullish outlook on the sector as Chinese production cuts and resilient domestic demand are expected to lift earnings. JSW Steel and Tata Steel stocks were among the key beneficiaries.

Banking stocks also contributed to the rebound, with the Nifty Bank rising 0.5 percent and the PSU Bank index up 1.1 percent. CLSA identified Bajaj Finance and SBI as top lending picks, citing growth visibility and valuation comfort.

The Nifty Auto index climbed 0.6 percent as festive demand lifted sentiment, led by Maruti, M&M, Tata Motors, Eicher Motors and Hero MotoCorp. Dealer checks suggested healthy bookings on Navratri’s first day, following a subdued Shradhh period. Ancillary names like Motherson Sumi and Bharat Forge have also gained sharply over the past month.

On the other hand, FMCG stocks dragged, with the sectoral index down nearly 1 percent. IT shares continued to underperform, losing another 0.7 percent after Monday’s 3 percent plunge, as the US decision to sharply raise H-1B visa fees weighed on outlook for Indian IT outsourcing. Realty, consumer durables and smallcaps also closed lower.

Rupee hits record low, FIIs sell equities

The rupee hit a record low of 88.76 against the US dollar in intraday trade. The slide was attributed to higher US tariffs, the $100,000 H-1B visa fee announced by the Trump administration, and continued foreign portfolio outflows. “The tariff issue continues to rattle Indian markets. FPIs are buying dollars and selling equities, putting money in Western markets. Post the tariffs, the $100,000 visa fee has made FPIs further sell equities worth Rs 2,900 crore after two days of small buying,” said Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP.

Global markets provided some support, with Asian indices largely trading in the green and US stock futures pointing to a higher opening on Wall Street. Investors took heart from dovish remarks by US Federal Reserve Governor Stephen Miran, who said the Fed funds rate is still higher than warranted under the Taylor rule approach, fuelling expectations of further rate cuts this year.

Bringing FIIs back into Indian equities

Vinod Nair, Head of Research at Geojit Investments, said: “GST rationalisation, a normal monsoon, lower interest rates, and tax incentives are expected to support consumption, narrowing the gap between valuations and growth prospects. Foreign investors are gradually turning buyers, driven by expectations of earnings upgrades in H2FY25, with consumption-focused sectors likely to attract attention and support the market.”

VK Vijayakumar, Chief Investment Strategist at Geojit, observed that foreign investors had temporarily diverted flows to other markets: “The high valuation differential between India and other markets have enabled the FIIs to move money from India to other markets and profit from it. The scenario will change when India’s corporate earnings start improving. Indications of this uptrend in corporate earnings are expected to trickle in with the festival season. Already there are reports of sharp spike in bookings for automobiles.”

Technical outlook

Anand James, Chief Market Strategist at Geojit Financial Services, said holding the 25,200-25,000 range would be crucial for the Nifty, while further buying in banking and auto shares could help cap downside pressure from IT and FMCG weakness.

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