Stock market today declined sharply on Tuesday, with the Sensex falling 329 points to close at 74,529 and the Nifty declining more than 80 points to end at 23,329. The sell-off came after both indices opened higher amid positive global market cues.

Key Highlights

• Sensex fell over 329 points to 74,529, while Nifty declined more than 80 points on Tuesday.
• Foreign investors sold Rs 576.20 crore of equities on Monday despite four consecutive sessions of benchmark gains.

Earlier, the Sensex had jumped by over 100 points to breach the 74,950 level, while the NSE Nifty50 had gone up by nearly 50 points to trade above 23,450 levels at 9:15 AM.

Sensex, Nifty Reverse Early Gains

Indian stock market today opened on a positive note, as the markets around the world rose. The benchmarks, however, later changed course, and finished quite low.

The Sensex trended down by over 329 points to end at around 74,529, while the Nifty was down by over 80 points and closed at near 23,329.

The move followed a day of benchmarks' four-session winning streak. On Monday, the Sensex gained 564.03 points, or 0.76%, to close at 74,858.99, while the Nifty rose 67.90 points, or 0.29%, to 23,414.30.

Asian Markets Trade Higher

The prices on global markets were bullish in the initial half of the Indian trading session. The Kospi, the S&P STK and the Hang Seng were trading up in South Korea, Shanghai and Hong Kong, respectively. The Indian stocks were also on the upside on Monday, gaining further in the U.S. markets.

Brent crude, the global oil benchmark, was trading 0.80% higher at $101.10 per barrel. According to V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, a moderation in crude prices and US 10-year bond yields had supported risk-on sentiment in US equity markets.

He said the positive global developments could support other equity markets, while attention in India would return to the secondary market following the completion of the NSE IPO.

Also Read: Weekly Stock Market Report: Sensex & Nifty Extend Loss for Sixth Week

FII Selling Remains a Key Market Factor

Foreign institutional investor (FII) activity remained an important factor for the domestic market. FIIs sold equities worth Rs 576.20 crore on Monday, according to exchange data.

Despite the foreign selling, Indian benchmark indices had ended Monday’s session higher for the fourth consecutive trading day. Investors are now likely to track foreign fund flows, crude oil prices and global bond yields for further market direction.

NSE IPO Refunds Could Support Market Liquidity

With the NSE IPO bidding process completed, investors are also expected to monitor the flow of funds back into the secondary market. Vijayakumar said the completion of the IPO and the return of funds through refunds could add liquidity to the market.

The broader market focus is therefore likely to remain on the interaction between domestic liquidity, foreign investor flows and global risk sentiment.

US-Iran Developments Remain in Focus

Geopolitical developments involving the US and Iran are another factor being watched by investors.

Ponmudi R, CEO of Enrich Money, said optimism was building around a possible meeting between US President Donald Trump and Iranian President Masoud Pezeshkian during the UN General Assembly week in New York.

Any developments surrounding US-Iran relations could influence investor sentiment and crude oil prices, particularly given concerns over energy supplies and regional tensions.