Closing Bell: Sensex slips 250 points in volatile trade, Nifty ends below 25,750; Anil Singhvi explains why gains faded

Indian equity markets ended lower on Tuesday after a choppy session, with benchmark indices once again failing to hold early gains amid persistent selling pressure, Zee Business Managing Editor and market expert Anil Singhvi said.

The BSE Sensex fell 250.48 points, or 0.30 per cent, to close at 83,627.69, while the NSE Nifty 50 declined 57.95 points, or 0.22 per cent, to settle at 25,732.30.

Market sentiment remained weak throughout the session as selling emerged at higher levels. Stocks such as Reliance Industries, Larsen & Toubro, Trent, Indigo and Maruti dragged the indices lower. Gains in ICICI Bank, State Bank of India, Tech Mahindra, TCS and Infosys provided limited support.

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Sectoral and broader market performance

Sector-wise, Nifty Auto declined 0.35 per cent, and FMCG slipped 0.32 per cent. In contrast, Nifty Bank rose 0.22 per cent, and Nifty IT gained 0.65 per cent. Broader markets showed mixed trends, with small-cap indices closing higher, while midcap indices ended marginally lower.

Selling pressure caps market rallies

Commenting on the market action, Singhvi said the inability of indices to sustain rallies has become a recurring pattern. He said sharp selling is seen whenever the Nifty moves into positive territory. “The market opens strong, but the moment it moves higher, selling emerges, and indices slip back,” Singhvi said.

FII selling and earnings disappointments

He said continued selling by foreign institutional investors remains a key factor weighing on the markets. “FIIs have been net sellers for six consecutive sessions. They are selling in both cash and derivative segments, and that pressure is clearly visible,” he said.

Singhvi said the ongoing earnings season has also failed to provide support. He noted that IT stocks have faced selling pressure even after reporting results that were not weak.

“Despite decent numbers from companies like TCS and HCL Tech, stocks failed to see a strong reaction. This suggests that the market is demanding not just good results, but strong guidance as well,” he said.

Global cues, heavyweights add to pressure

According to Singhvi, global uncertainty has added to investor caution. He said unpredictable global developments have increased nervousness, leading investors to avoid fresh positions.

"Unpredictable global developments have increased nervousness. Investors are hesitant to take fresh positions amid fears of sudden negative news,” he said.

Singhvi also pointed to currency weakness and elevated crude oil prices as additional concerns for the market. “The rupee has weakened again, and crude remains elevated. These factors add pressure to overall market sentiment,” he said.

Heavyweight stocks have also contributed to the decline, Singhvi said. He pointed to sharp corrections in stocks such as Reliance Industries and pressure in capital goods names like Larsen & Toubro. “When large stocks fall, it becomes difficult for indices to remain stable,” he said.

Singhvi said market sentiment has weakened further due to the absence of buying interest. “There is selling pressure and a lack of buying interest at the same time. Investors prefer to wait, while sellers are active,” he said.

On index trends, Singhvi noted a divergence between the Nifty and Bank Nifty. He said Bank Nifty has shown relatively better resilience compared with the broader market. “Bank Nifty has been relatively resilient, while Nifty has remained under pressure. If a recovery comes, Bank Nifty may lead,” he said.

Singhvi said until key levels are crossed decisively, market conditions are likely to remain volatile, with rallies facing selling pressure at higher levels.