FPJ News Service MUMBAI

Market sentiments remained positive on Tuesday on account of optimism around US-China trade negotiations. However, institutional and individual investors were cautious following the recent rally driven by favourable macros, and concerns over stretched valuations.

Profit-taking in pivotals Reliance Industries, HDFC Bank, ICICI Bank, Asian Paints, Bajaj Finance, Tata Steel, Bajaj Finserv, Maruti, and Mahindra & Mahindra restricted market rally. The 30-share BSE Sensex fell 53.49 points to close at 82,391.72. The 50-share NSE Nifty eked out gains of 1.05 points to settle at 25,104.25, marking its fifth straight day of gains. Tech Mahindra, Tata Motors, Infosys, HCL Tech, IndusInd Bank and UltraTech Cement were among the top gainers.

According to Bajaj Broking Research, markets took a breather after a sharp four-day uptrend. The banking and financial sector space also witnessed some unwinding of positions. The IT pack outperformed sharply, buoyed by upbeat US non-farm payroll data and optimism around a potential US–China trade resolution, which reignited risk-on sentiment in export-oriented tech counters.

The broader market mirrored the indecisive mood, with the Nifty Midcap 100 closing marginally in the red and the Nifty Smallcap 100 managing modest gains, reflecting a cautious undertone and selective participation across market capitalizations. “Domestic equity benchmarks traded within a narrow range as investors adopted a cautious approach following the recent rally driven by favourable domestic macroeconomic indicators and concerns over stretched valuations.

However, the overall sentiments remained on the positive side on account of optimism around US-China trade negotiations. Additionally, a firm US dollar acted as a tailwind for export-oriented sectors, particularly IT and Pharma, which attracted strong buying interest,” said Vinod Nair, head of research at Geojit Investments.