Market Update: Sensex, Nifty Trade Flat in Choppy Session; IT Stocks Shine While FMCG, Banks Weigh

The domestic equity markets remained volatile on Tuesday, as strong gains in information technology stocks were offset by weakness in FMCG and banking shares. Despite a sharp selloff across Asian markets, domestic equities remained relatively resilient, though the market lacked clear direction.

As of 2:00 pm, the BSE Sensex slipped 5.96 points, or 0.01%, to 76,829.82, after touching an intraday high of 76,988.48 and a low of 76,705.22. The NSE Nifty was trading 5.85 points, or 0.02%, higher at 24,001.80, after moving between 23,961.95 and 24,041.15 during the session.

The intraday trend remained volatile, with the Nifty repeatedly swinging between gains and losses before hovering around the flat line, indicating a cautious mood among investors.

IT Stocks Continue to Outperform

Technology shares remained the biggest support for the market, extending Monday’s rally following strong earnings optimism. The Nifty IT index surged 3.46%, making it the top-performing sector of the day.

Among the major gainers were TCS (+4.66%), Tech Mahindra (+3.45%), Infosys (+2.75%), HCL Technologies (+1.95%), and LTIMindtree (+0.73%). The rally in frontline IT names helped cushion the weakness seen across several other sectors.

FMCG, Banks and Chemicals Drag the Market

Profit booking in defensive and financial stocks kept benchmark indices under pressure. The Nifty FMCG index declined 1.30%, emerging as the worst-performing sector, largely due to a sharp 6% fall in Hindustan Unilever following its quarterly earnings reaction.

Banking stocks also remained weak, with Nifty Bank slipping 0.47%. Metal stocks also traded lower, while the Nifty Chemicals index slipped 1.17%.

On the positive side, Nifty Realty gained 1.57%, Auto rose 0.86%, and Consumer Durables added 0.72%.

Broader Markets Mixed

The broader market presented a mixed picture. The Nifty Midcap 100 gained 0.13%, while the Nifty Midcap 50 rose 0.32%, indicating selective buying in mid-sized companies.

However, risk appetite remained subdued in smaller companies. The Nifty Smallcap 100 fell 0.36%, while the Nifty Smallcap 250 dropped 0.51% and the Nifty Microcap 250 declined more than 1%, reflecting continued profit booking in the broader market.

India VIX edged up 0.13% to 12.68, indicating volatility remained contained despite choppy trading.

Asian Markets Remain Under Pressure

Global cues remained weak as Asian equities witnessed sharp losses led by semiconductor stocks. South Korea’s Kospi plunged more than 8%, triggering a circuit breaker, while Japan’s Nikkei fell around 4% amid concerns over rising AI infrastructure spending and intensifying competition from Chinese chipmakers.

The weakness followed overnight losses in Nvidia and other global semiconductor stocks, keeping investor sentiment cautious across regional markets.