Share Markets Continue Trading In Red, Sensex Breaches 85,500, Nifty Tests 26,100

In the pre-open session around 9:09 AM, markets indicated a weak start as the Sensex slipped over 300 points toward 85,300, signalling caution among investors following Monday’s volatile session.

Notably, benchmark indices touched fresh all-time highs on December 1, before erasing all gains and settling the trade marginally lower.

Source : ABPLIVE AI

Dalal Street opened Tuesday trading with a negative sentiment prevalent in the market. Following the lead from the previous session, the BSE Sensex began trading today at 85,427, tanking more than 200 points, while the NSE Nifty50 touched 26,117, falling over 50 points, around 9:15 AM.

On the 30-share Sensex, Asian Paints, Infosys, Bharti Airtel, SBI, and Maruti stood among the early gainers. Meanwhile, the laggards included HDFC Bank, ICICI Bank, Eternal, Bajaj Finserv, and Tata Steel.

In the broader markets, the Nifty Financial Services bled 0.58 per cent. Sectorally, the PSU Bank index led across the board with gains of 0.84 per cent, while the Financial Services 25/50 index slipped 0.41 per cent.

In the pre-open session around 9:09 AM, markets indicated a weak start as the Sensex slipped over 300 points toward 85,300, while the Nifty hovered below the 26,100 mark, signalling caution among investors following Monday’s volatile session.

Weak GST Collections, Manufacturing Slowdown

Markets initially rallied on Monday buoyed by optimism after India posted stronger-than-expected Q2 GDP growth of 8.2 per cent, the fastest pace in six quarters. However, expectations of a potential RBI rate cut later this week faded as the solid macro data reinforced the possibility of the central bank maintaining its stance. A slower GST collection growth in November and profit-booking also contributed to the late-session pullback.

This sentiment was still prevalent on Tuesday morning as more economic data released yesterday shaped market sentiment.  

India’s manufacturing activity eased to a nine-month low in November as the HSBC Manufacturing PMI declined to 56.6, compared with 59.2 in October, indicating softer growth in sales and production. This proved that India's factories were expanding, but weren't immune to the impact of steep US tariffs.

Meanwhile, gross GST collections rose just 0.7 per cent in November to Rs 1.70 lakh crore, as domestic revenues weakened.

Global Markets, Foreign Flows

Foreign Institutional Investors (FIIs) turned net sellers on Monday, pulling out Rs 1,171.31 crore from Indian equities, provisional exchange data showed. In contrast, Domestic Institutional Investors (DIIs) remained net buyers, injecting Rs 2,558.93 crore into the market.

Across Asia, performance was mixed. Shanghai’s SSE Composite index traded in the red, while South Korea’s Kospi, Japan’s Nikkei 225, and Hong Kong’s Hang Seng index all opened on a firmer note. On Wall Street, major US indices closed lower overnight, reflecting cautious investor sentiment.

Meanwhile, Brent crude, the international benchmark, inched down 0.03 per cent to $63.15 per barrel.

Sensex, Nifty Retreat From Record Highs On Monday

Notably, benchmark indices touched fresh all-time highs on December 1, before erasing all gains and settling the trade marginally lower. The Sensex, which had surged 452.35 points or 0.52 per cent to an intra-day peak of 86,159.02, eventually surrendered gains to close 64.77 points or 0.08 per cent lower at 85,641.90.

The Nifty also followed a similar trajectory, ending 27.20 points or 0.10 per cent lower at 26,175.75, after hitting a record high of 26,325.80 earlier in the day.