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Indian benchmark indices ended lower for the third consecutive session on Tuesday, weighed down by persistent global uncertainties and sustained foreign investor selling. The benchmark indices witnessed another volatile day, with the Sensex falling 636.24 points, or 0.78 per cent, to close at 80,737.51, while the Nifty 50 lost 174.10 points, or 0.70 per cent, settling at 24,542.50.

The sentiment remained cautious as markets struggled to maintain early gains and slipped into the red during the latter half of the session. Analysts attributed the decline to a mix of external headwinds, including geopolitical tensions and concerns over global trade developments.

Sectoral Drag And Market Breadth

On the sectoral front, the pressure was visible across the board, with IT, PSU Banks, Financial Services, FMCG, and Energy stocks emerging as the top laggards. The broader market, however, presented a mixed picture. The Nifty Smallcap 100 index inched up by 18.60 points, or 0.10 per cent, to close at 18,114, indicating resilience among smaller stocks. In contrast, the Nifty Midcap 100 declined 258.45 points, or 0.45 per cent, to 57,517.

Ajit Mishra, SVP – Technical Research at Religare Broking Ltd, noted, “After an initial uptick, the Nifty oscillated sharply in early trade; however, a sharp decline below the short-term moving average (20 DEMA) in the latter half of the session kept the tone negative.”

Investors Eye RBI Policy Decision

Traders remained on edge ahead of the Reserve Bank of India’s upcoming policy meeting, with many awaiting clear signals on the interest rate trajectory. Analysts suggested that despite the overall weakness, relative strength in the banking space could cushion further downside in the near term.

Rupee Weakens, Gold Pauses

In the currency markets, the Indian rupee gave up Monday’s gains, weighed by a stronger U.S. dollar and risk-off sentiment. Foreign portfolio outflows added to the pressure. According to Dilip Parmar, Research Analyst at HDFC Securities, the USD/INR pair is expected to trade within a range of 85.10 to 85.90 in the short term.

Meanwhile, gold prices remained steady near Rs 97,700 after a sharp rise of almost Rs 2,000 on Monday, when it briefly touched Rs 98,000 on the MCX. Experts suggest the precious metal is now consolidating as markets await key economic data releases from the U.S. later this week.