The S&P BSE Sensex fell 533 points, or 0.63%, to close at 84,679.86, while the NSE Nifty 50 declined 167 points, or 0.64%, settling at 25,860.10.
Among the Sensex’s 30 constituents, Axis Bank, Eternal, HCL Technologies, Tata Steel and Bajaj Finserv led the declines, with losses ranging from 2% to 5%.
Axis Bank slid 5% after brokerage Citi warned that pressure on net interest margins could persist into the December quarter. The stock was the single largest drag on the Nifty, pulling financials lower by 0.8% and private-sector banks down 1.2%.
Broader markets also weakened, with the midcap and smallcap indices falling 0.8% and 0.9%, respectively.
Expert views
The continued INR weakness to fresh record lows, driven by persistent FII outflows and subdued global sentiments, dragged domestic markets into negative territory, said Vinod Nair, Head of Research at Geojit Investments, adding that smallcaps and midcaps lagged large caps, with IT, metals, banking, and realty leading losses, while consumption stocks offered limited support.
“Volatility is expected to remain elevated amid currency fluctuations and uncertainty over foreign inflows. Progress on the US–India trade deal and rupee stabilisation will be critical, while softer commodity prices and improving earnings visibility provide a constructive medium-term backdrop,” said Nair.
Global Markets
Asian markets retreated on Tuesday while the dollar hovered near two-month lows, as investors grew more cautious ahead of a busy run of U.S. economic data, including the closely watched jobs report, that could shape expectations for Federal Reserve policy in the year ahead.
The risk-off tone weighed across asset classes. Bitcoin slipped 0.3% to $86,017.67 after touching a two-week low in the prior session. U.S. Nasdaq futures fell 0.8%, while European equity futures were down 0.5%.
Technology shares led declines across Asia. South Korea’s Kospi dropped 1.8%, Taiwan’s benchmark index fell 0.8%, and Hong Kong’s Hang Seng Tech Index slid 2.7%. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.45%, touching its lowest level in three weeks.
Gold prices eased about 0.6% to $4,275.41 an ounce, slipping back from the eight-week highs reached late last week.
Crude impact
Oil prices extended their decline on Tuesday, as signs of progress toward a potential Russia-Ukraine peace deal fueled expectations that sanctions could eventually be eased, adding to concerns about future supply.
Brent crude futures fell 89 cents, or about 1.5%, to $59.67 a barrel by 0942 GMT. U.S. West Texas Intermediate crude slid 92 cents, or 1.6%, to $55.90 a barrel. Both benchmarks were trading near their lowest levels since May.
Rupee vs Dollar
The Indian rupee slid to a record low on Tuesday, as fragile risk sentiment compounded pressure from sustained hedging demand and foreign portfolio outflows, with uncertainty over a potential U.S. trade deal continuing to weigh on the currency.
The rupee weakened to 91.0750 per dollar before closing 0.3% lower at 91.0275. The currency has fallen more than 6% against the U.S. dollar so far this year, placing it among the worst-performing emerging-market currencies in 2025.
The dollar index, which tracks the greenback against a basket of six major peers, was last at 98.20, slightly lower after earlier hovering near its weakest level since Oct. 17.
(with inputs from agencies)
