Indian equity markets traded lower on Tuesday, extending losses through the morning session as investors remained cautious amid weak global cues and upcoming domestic policy events. At around 10:10 am, the Sensex slipped 560 points to 81,784.28, while the Nifty 50 fell 158 points to 25,184.30, with selling pressure visible across most major sectors.
Sentiment was hit after the US Federal Reserve kept interest rates unchanged and signalled that rate cuts may not come soon. The Fed’s stance pushed the dollar and US bond yields higher, reducing the appeal of emerging market assets such as Indian equities. Global markets showed mixed trends following the announcement, adding to investor uncertainty.
Persistent foreign portfolio investor outflows and a rupee hovering near record lows further weighed on markets. Stocks with high foreign ownership, including financials and information technology, saw sharper declines, while mid-cap and small-cap shares underperformed as investors cut exposure to riskier segments.
Domestic caution also remained high ahead of the Union Budget and Economic Survey later this week. Uncertainty around fiscal measures, taxation and government spending prompted traders to book profits and limit fresh positions. Uneven corporate earnings for the December quarter added another layer of caution, keeping volatility elevated and market sentiment fragile.
