Daijiworld Media Network - Mumbai
Mumbai, Dec 9: Indian equity markets slipped on Tuesday as investors chose to book profits after a strong recent rally, triggering a broad decline across key indices. Market sentiment was further dampened by reports that U.S. President Donald Trump may consider fresh tariffs on Indian rice, raising renewed concerns over the unresolved trade talks between the two countries.
The Sensex closed 436.41 points lower at 84,666.28, a drop of 0.51 per cent. The Nifty also retreated, ending at 25,839.65 after losing 120.90 points, or 0.47 per cent.
Several major stocks weighed on the benchmarks, with Asian Paints, Tech Mahindra, HCL Tech, Tata Steel, Maruti Suzuki, Sun Pharma, TCS, ICICI Bank and Bajaj Finance among the biggest laggards. These shares declined as much as 4.6 per cent during the trading session. However, gains in Eternal, Titan, Adani Ports, BEL and SBI offered limited respite.
Despite the weakness in the frontline indices, broader markets outperformed. The Nifty MidCap index edged up 0.32 per cent, while the Nifty SmallCap index surged 1.14 per cent, reflecting sustained interest in mid- and small-cap counters.
Most sectoral indices remained under pressure, with Nifty IT, Auto and Pharma sliding nearly 1 per cent. PSU Bank, FMCG, Media, Consumer Durables and Chemicals also traded lower throughout the day.
Analysts attributed the decline to persistent global trade uncertainties and steady profit booking as investors adopted a cautious stance ahead of potential tariff decisions from the U.S. “In the near term, central bank commentary, currency trends and FII flows will guide sentiment, though domestic economic resilience should help limit downside risks,” market experts noted.
They added that while the market expects a 25-basis point rate cut by the U.S. Federal Reserve and a rate hike from the Bank of Japan, the forward outlook for 2026 will be crucial.
Meanwhile, the rupee strengthened by 23 paise to close at 89.82, supported by short covering and a mild rebound in equities.