Equity benchmarks declined for the second consecutive session on Tuesday, extending Monday’s steep fall as caution dominated ahead of the U.S. Federal Reserve’s policy announcement. Market sentiment weakened further after the U.S. hinted at potential tariff action on India’s rice exports. By 9:50 am, the Sensex had fallen 633.90 points (0.74%) to 84,468.79, while the Nifty dropped 211.25 points (0.81%) to 25,749.30. All 16 major sectoral indices were trading in the red.
Among Nifty50 stocks, Asian Paints, Infosys and Jio Financial Services were notable losers, slipping up to 4%, while Titan Company and ETERNAL registered modest gains of around 1%. Market breadth remained weak, with 1,400 stocks advancing and over 2,100 declining.
Key factors dragging markets:
- Fed-related anxiety: Investors await the Fed’s meeting, with a 25 bps cut expected but uncertainty lingering over the 2026 rate trajectory.
- Tariff worries: Comments by U.S. President Donald Trump about imposing tariffs on Indian rice pressured exporter stocks like KRBL, LT Foods and GRM Overseas.
- Rupee weakness: The rupee slipped to 90.15 per dollar amid corporate and FPI demand.
- Continued FII selling: Foreign investors offloaded ₹655 crore on Monday, marking the eighth straight session of withdrawals.
- Soft global cues: Asian markets and U.S. indices traded lower ahead of the Fed decision.
- Mid- and small-cap weakness: Broader indices extended their decline, falling up to 1%.
