Indian equity markets started Tuesday's trading session on a weak note, with the benchmark Sensex initially declining by 330 points. The broader Nifty 50 index also slipped below the crucial 24,000 mark, briefly touching 23,999.25 in early trade. This downturn follows a positive close in the previous session where both indices had registered gains.
Key Losers Drag Market Down
Among the Sensex constituents, several heavyweight stocks experienced significant declines. State Bank of India (SBI) saw its shares slip by 1.12% to Rs 1099.40, while Sun Pharma shares fell by 0.92%. Other prominent losers included Axis Bank, which dropped 0.56%, Eternal down 0.49%, and Bajaj Finserv, declining by 0.37%.
Global Cues and Geopolitical Tensions Weigh
The weak opening in the Indian market was largely influenced by a combination of mixed global cues, elevated crude oil prices, and ongoing geopolitical uncertainties. Concerns surrounding the Strait of Hormuz, stemming from the unresolved conflict between the US and Iran, contributed to the cautious sentiment among investors.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd, highlighted India's underperformance compared to global markets.
"India underperformed hugely in 2025 and this trend is continuing in 2026, too," Vijayakumar stated, noting that while the S&P 500 set new records and indices like Kospi and Taiex saw substantial year-to-date gains, the Nifty was down 7.8% for the year. The primary driver for this disparity, he explained, is the booming AI trade globally, which began in 2025 and continues to attract significant "hot money" flows, leading to sustained selling by Foreign Institutional Investors (FIIs) in markets not directly benefiting from the AI surge.
Broader Market Performance and Outlook
Across Asia, most major markets traded lower, with Japan's Nikkei 225 down 0.49% and Hong Kong's Hang Seng slipping 0.68%. South Korea's Kospi, however, bucked the trend with a gain of 0.57%. Overnight, Wall Street ended mixed, with the S&P 500 and Nasdaq Composite posting modest gains, while the Dow Jones Industrial Average edged down.
Hariprasad K, SEBI-registered research analyst and founder of Livelong Wealth, suggested that markets appear to be entering a consolidation phase.
"A disciplined, tactical approach remains key, as headline risks and expiry dynamics could lead to swift shifts in sentiment through the session," Hariprasad advised, emphasizing that directional conviction is currently limited, with stock-specific triggers dominating.In the preceding session on Monday, the Sensex had risen by 639.42 points, or 0.83%, to close at 77,303.63, and the Nifty had climbed 194.75 points, or 0.81%, to settle at 24,092.70. However, the gains were not sustained into Tuesday's opening.