Markets closed lower for the second consecutive session on Tuesday, with benchmark indices slipping amid persistent profit booking and a sharp decline in index heavyweight Reliance Industries, which tumbled over 4 per cent in its steepest intraday fall in more than eight months.
The BSE Sensex declined 376.28 points, or 0.44 per cent, to settle at 85,063.34, while the NSE Nifty shed 71.60 points, or 0.27 per cent, to end at 26,178.70. The Nifty opened at 26,189.70 against the previous close of 26,250.30, and briefly rallied to an intraday high of 26,273 within the first hour before selling pressure resurfaced, dragging the index down to 26,124 around 2:30 p.m.
“Today, profit booking continues at higher levels, and the Nifty ends 72 points lower, while the Sensex was down by 376 points,” said Shrikant Chouhan, Head Equity Research at Kotak Securities. “Technically, after an early morning intraday rally, the market registered profit booking again at higher levels.”
Among the Nifty 50 constituents, Apollo Hospitals emerged as the top gainer, surging 3.50 per cent to close at ₹7,331 from its previous close of ₹7,083. ICICI Bank gained 2.80 per cent to end at ₹1,409.90 from ₹1,371.50, while Tata Consumer Products climbed 2.78 per cent to ₹1,215 from ₹1,182.10. HDFC Life advanced 2.21 per cent to ₹776.05 from ₹759.30, and Sun Pharma rose 1.80 per cent to ₹1,760 from ₹1,728.90.
On the losing side, Trent witnessed the steepest decline, plummeting 8.46 per cent to ₹4,055 from ₹4,429.80 following its weak Q3 business update. Reliance Industries fell 4.39 per cent to ₹1,508.90 from ₹1,578.10, while Kotak Mahindra Bank dropped 2.22 per cent to ₹2,142.30 from ₹2,190.90. InterGlobe Aviation (IndiGo) declined 1.96 per cent to ₹5,002.50 from ₹5,102.50, and ITC shed 1.84 per cent to ₹343.25 from ₹349.70.
“Indian equity markets closed marginally lower, as investor sentiment turned cautious amid a sharp decline in index heavyweight Reliance Industries Ltd, which weighed on benchmark indices,” said Ponmudi R, CEO of Enrich Money. “The risk-off tone was further reinforced by rising geopolitical tensions and renewed tariff-related concerns, prompting profit-taking at higher levels.”
Sectoral performance remained mixed, with Nifty Pharma and Healthcare indices outperforming the broader market, rallying over 1.5 per cent each. However, Nifty Oil & Gas Index lost the most, shedding 1.80 per cent. Nifty Financial Services gained 0.34 per cent to close at 27,945.10, while Nifty Bank edged up 0.12 per cent to 60,118.40. The Nifty Midcap 100 slipped 0.19 per cent to 61,148.55, and Nifty Smallcap 100 declined 0.22 per cent to 17,887.85.
Market breadth remained weak on the BSE, with 2,606 stocks declining against 1,575 advances, while 168 remained unchanged among 4,349 stocks traded. The advance-decline ratio stood at 0.66, signaling continuation of profit booking in the midcap and smallcap space. A total of 143 stocks hit 52-week highs, while 125 touched 52-week lows, and six stocks ended in the lower circuit.
“Nifty extended its decline for the second consecutive session, losing 74 points to close at 26,175,” said Nandish Shah, Deputy Vice President at HDFC Securities. “After a weak start, the index quickly rebounded, gaining 129 points to hit an intraday high of 26,273 within the first hour of trade. However, the recovery proved short-lived as selling pressure resurfaced.”
The Indian rupee snapped its four-session losing streak, appreciating 11 paise against the dollar to close at 90.17, aided largely by foreign bank dollar supply and a likely pick-up in portfolio inflows from overseas investors. “Rupee gained 11 paise to 90.17 against the dollar, supported by a marginal pullback in the dollar index and relatively lower foreign outflows in recent sessions,” said Jateen Trivedi, VP Research Analyst at LKP Securities. “Overall bias for the rupee stays weak, with the currency likely to trade in a broad 89.75–90.55 range in the near term.”
Gold prices traded positive in early morning trade, rising by ₹600 to around ₹1,38,700 in MCX. “Risk sentiment continues to favor higher allocation toward gold amid renewed geopolitical tensions,” Trivedi added. “Gold is expected to remain volatile but biased upward, with a trading range seen between ₹1,37,000 and ₹1,42,000 in the near term.”
Looking ahead, market participants remain cautiously optimistic about the near-term outlook. “We are of the view that the intraday market formation is still on the weaker side, but a fresh selloff is possible only after the breach of 26,100/84800,” Chouhan said. “Above this, the market could bounce back up to 26,350-26,380/85500-85700.” Investors will track key global data this week, including US employment figures and Eurozone inflation numbers, while domestic focus remains on Q3 business updates and geopolitical developments.
Published on January 6, 2026
