FPJ News Service mumbai

India’s equity markets swung sharply on Tuesday as a weakening rupee and persistent FII fund outflows hit investor sentiment ahead of key global and domestic cues. The benchmark BSE Sensex slid 313.70 points to close at 84,587.01, with 24 of its 30 constituents finishing in negative territory. The NSE Nifty declined 74.70 points to end at 25,884.80, slipping back below the 26,000 mark. Since 21 November, the Nifty has fallen by more than 1%, while the Sensex is down 1.2%.

Vinod Nair, Head of Research at Geojit Financial Services, said the day’s volatility was driven by the rupee’s continued weakness, ongoing FII withdrawals and caution ahead of the upcoming FOMC meeting, as well as developments on the Indo–US trade front.

While selling pressure remains pronounced around the 26,000 level, he noted that “the downside appears limited, given strong domestic fundamentals and a robust earnings outlook for the second half.” Public-sector banks and real estate counters were among the day’s standout performers, buoyed by resurgent housing demand and the rising market share of state-owned lenders.

Ajit Mishra, Senior Vice President – Research at Religare Broking, advised investors to maintain a “cautious yet constructive stance”, concentrating on stocks demonstrating relative strength. He added that traders might consider tactical short positions as a hedge against existing long exposure.

Geojit’s Chief Investment Strategist, Dr V. K. Vijayakumar, observed that global cues remain mixed. Although Wall Street’s rally and expectations of a 25-basis-point Federal Reserve rate cut are broadly supportive, Monday’s sharp rebound in the Nasdaq and megacap technology stocks could reignite concerns of an emerging “AI bubble”. He added that India stands to benefit more sustainably “once the AI trade cools and capital rotates towards emerging markets and non-AI equities.”