Share Markets Fragile As Investors Turn Cautious, Sensex Ends Under 80,650, Nifty Below 24,400

On Sensex, Bharti Airtel, Tata Steel, M&M, Hindustan Unilever, and Nestle emerged among the gainers. Meanwhile, Eternal, Tata Motors, SBI, Adani Ports, and NTPC remained among the laggards.

The Union Home Ministry instructed all states and Union Territories to conduct mock drills as a precautionary measure.

Source : ABPLIVE AI

The Indian stock market saw a reversal in sentiment as benchmark indices closed the session on Tuesday in red. The Sensex and Nifty ended trading in the negative territory as investors remained cautious ahead of the interest rate decision from the US Federal Reserve and heightened geopolitical tensions continued to weigh on the sentiment in the market.

The BSE Sensex settled for the session more than 150 points lower under 80,650, while the NSE Nifty50 ended trading below the 24,400 mark, declining 82 points.

On the 30-share Sensex platform, Bharti Airtel, Tata Steel, M&M, Hindustan Unilever, and Nestle emerged among the gainers. Meanwhile, Eternal, Tata Motors, SBI, Adani Ports, and NTPC remained among the laggards.

In the broader markets, the Nifty Smallcap 100 settled negatively and closed 2.58 per cent in red. Sectorally, the PSU Bank dominated in red and ended close to 5 per cent lower. 

Indo-Pak Tensions Heighten

Amid escalating tensions between India and Pakistan following the recent terror attack in Pahalgam, the Union Home Ministry instructed all states and Union Territories to conduct mock drills as a precautionary measure. These exercises will take place in nearly 300 'civil defence districts' across the country, which include strategically important areas housing nuclear facilities, military installations, oil refineries, and hydroelectric power stations. The mock drills will focus on activating air-raid warning sirens, preparing civilians for potential hostile assaults, and ensuring the readiness of existing defence infrastructure such as bunkers and trenches.

Rupee And Foreign Flows

The Indian rupee depreciated 15 paise and closed at 84.45 (provisional) against the US dollar on Tuesday, as heightened uncertainty and a cautious outlook dragged the currency lower.

The foreign institutional investors (FIIs) continued to pour into Indian equities and infused Rs 497.79 crore on a net basis on Monday, official data revealed. The global oil benchmark, Brent crude, climbed 2.76 per cent to touch $61.85 per barrel.

Vinod Nair, Head of Research, Geojit Investments Limited, explained, "The domestic market has been consolidating in recent sessions following the strong recovery, driven by cautious sentiment amid India-Pakistan border tensions. Weak earnings growth for the current quarter has further impacted the market. Meanwhile, investors are closely monitoring India's bilateral trade negotiations with the US. Additionally, speculation around the US Federal Reserve is drawing attention, as no rate cuts are expected in the near term, affecting global trends."

PMI

Meanwhile, the HSBC India Services PMI Business Activity index climbed marginally to 58.7 in April, from 58.5 in March, showcasing a steady momentum in the sector in the new fiscal year. The index, compiled by S&P Global, showed that a sharp expansion happened in the sector last month on account of new orders and output.