Among Sensex’s 30 members, Axis Bank, Eternal, HCL Technologies, Tata Steel and Bajaj Finserv led the declines, with losses ranging from 2% to 5%.Axis Bank fell 5% after brokerage Citi warned that pressure on net interest margins could continue into the December quarter. The stock was the biggest drag on the Nifty, pushing financials down 0.8% and private sector banks down 1.2%.
Broader markets also weakened, with the midcap and smallcap indices down 0.8% and 0.9% respectively.
Expert views
Continued weakness in the INR to fresh record lows, driven by continued financial outflows and subdued global sentiment, has pushed domestic markets into negative territory, said Vinod Nair, head of research at Geojit Investments. He added that smallcaps and midcaps lagged largecaps, with IT, metals, banking and real estate leading losses, while consumer stocks provided limited support.
“Volatility is expected to remain elevated amid currency fluctuations and uncertainty over foreign inflows. Progress on the US-India trade deal and stabilization of the rupee will be key, while softer commodity prices and better earnings visibility provide a constructive medium-term backdrop,” Nair said.
Global markets
Asian markets retreated on Tuesday with the dollar hovering around a two-month low as investors turned more cautious ahead of a busy round of US economic data, including the closely watched jobs report, that could shape expectations for Federal Reserve policy in the coming year.
The risk-averse tone had an impact on all asset classes. Bitcoin fell 0.3% to $86,017.67 after hitting a two-week low in the previous session. U.S. Nasdaq futures fell 0.8%, while European stock futures fell 0.5%.
Technology stocks led declines across Asia. South Korea’s Kospi fell 1.8%, Taiwan’s benchmark index fell 0.8% and Hong Kong’s Hang Seng Tech Index fell 2.7%. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.45% to its lowest level in three weeks.
Gold prices fell about 0.6% to $4,275.41 an ounce, retreating from an eight-week high reached late last week.
Rough impact
Oil prices continued their slide on Tuesday after signs of progress toward a possible peace deal between Russia and Ukraine fueled expectations that sanctions could eventually be eased, raising 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 fell 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 fell to a record low on Tuesday as fragile risk sentiment compounded pressure from ongoing hedging demand and foreign portfolio outflows, while uncertainty over a possible US trade deal continued 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 US dollar so far this year, making it one of 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, down slightly after previously hovering around its weakest level since Oct. 17.
(with input from agencies)
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