The Nifty Bank index lost 0.84% and Nifty Financial Services fell 1.02%, reversing Monday’s gains. Auto and IT stocks provided support, with Tech Mahindra, Maruti Suzuki, Hero MotoCorp, M&M, and NTPC among the top gainers
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Benchmark indices closed in negative territory on Tuesday despite a strong opening, with banking heavyweights HDFC Bank and ICICI Bank leading the decline as investors turned cautious ahead of crucial domestic and US inflation data releases.
The BSE Sensex settled 368.49 points or 0.46 per cent lower at 80,235.59 after hitting an intraday high of 80,997.67. The Nifty 50 declined 97.65 points or 0.40 per cent to 24,487.40, closing below the key 24,500 mark after opening at 24,563.35.
“Indian markets witnessed a volatile session on Tuesday, with benchmark indices slipping in the second half, dragged by weakness in heavyweight banking stocks like HDFC Bank and ICICI Bank,” said Hariprasad K, Founder, Livelong Wealth. “The Nifty 50 closed near the 24,550 mark, while the Sensex also ended lower, even as broader markets outperformed with relatively smaller losses.”
Banking and financial stocks emerged as the primary drag on the indices. HDFC Bank fell 1.29 per cent while ICICI Bank declined 1.02 per cent, reversing Monday’s gains that were driven by State Bank of India’s strong earnings. The Nifty Bank index declined 0.84 per cent to 55,043.70, giving up part of Monday’s 0.9 per cent rally. The Nifty Financial Services index also witnessed significant selling pressure, falling 1.02 per cent to 26,135.30.
However, several stocks bucked the trend with Tech Mahindra emerging as the top gainer on Nifty 50, rising 2.03 per cent to ₹1,511.20. Maruti Suzuki gained 1.98 per cent to ₹12,847.00, while Hero MotoCorp advanced 1.79 per cent to ₹4,644.00. Mahindra & Mahindra climbed 1.56 per cent to ₹3,236.00, and NTPC rose 1.19 per cent to ₹340.15.
“Today, Indian stock market witnessed a subdued trading session, with both benchmark indices ending in negative territory despite opening with a positive bias,” said Vaibhav Vidwani, Research Analyst at Bonanza. “The market’s negative close can be attributed to several key factors. Banking and financial stocks emerged as the primary drag, with heavyweights like HDFC Bank (-1.29 per cent) and ICICI Bank (-1.02 per cent) pulling down the indices.”
Sectoral performance remained mixed throughout the session. The Nifty Media and Nifty Pharma indices outperformed, closing in the green, extending the gains of pharma stocks for the second consecutive day. Auto and IT sectors provided some cushion in early trade, but the momentum faded as banking counters came under pressure. Realty stocks lagged during the session.
The broader market showed signs of caution with the Nifty Midcap 100 index ending with a loss of 0.27 per cent at 56,324.85, while the Nifty Smallcap 100 closed flat. Market breadth was slightly negative, with 2,065 advances against 1,976 declines among the 4,204 stocks traded on the BSE. Out of the Nifty 500 universe, 272 stocks ended in the red, highlighting weakness across sectors.
“The market couldn’t build on Monday’s gains, showing that the current pullback is still weak and lacks strength within the larger downtrend,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities. “This lack of follow-through buying underscores the absence of conviction among participants, raising concerns about the sustainability of the recovery attempt.”
Corporate earnings continued to influence stock-specific action. Metals saw selective buying after Hindalco reported a strong 30 per cent year-on-year jump in Q1 consolidated net profit to ₹4,004 crore. Other corporate results from Hindustan Aeronautics, Ingersoll Rand, and Shriram Properties also kept investors focused on individual stock movements.
In currency markets, the rupee traded flat near 87.70 as the dollar index hovered around 98.30 with a slightly positive bias. “Firm crude prices kept pressure on the rupee, while traders awaited the release of US CPI data later this evening for fresh cues. The short-term range for the rupee is seen between 87.45 and 87.95,” said Jateen Trivedi, VP Research Analyst at LKP Securities.
Gold prices remained under pressure, slipping by ₹150 to hover near ₹1,00,400 on MCX, while Comex gold stayed close to $3,355. “The market remains cautious, with dollar strength keeping gains capped, while rupee movement will guide the domestic trend,” Trivedi added.
Market volatility remained subdued with India VIX slipping to 12.20. The derivatives market showed a slightly bullish advance-decline ratio, with significant open interest activity seen in stocks like Astral, Alkem, Titagarh, Suzlon, and Maruti.
Looking ahead, investors are eyeing key global triggers, including the US inflation data and the scheduled Friday meeting between US President Donald Trump and Russian President Vladimir Putin. “Any surprise in CPI could trigger sharp volatility, with a softer reading supporting a rebound in gold and a stronger print adding pressure,” said Trivedi. Domestic inflation data is also expected to show continued moderation, with a Reuters poll suggesting India’s retail inflation may have dropped to an eight-year low of 1.76 per cent in July.
Published on August 12, 2025
