Domestic equity benchmarks BSE Sensex and NSE Nifty closed lower on Tuesday, dragged down by banking and energy stocks amid the fragile US-Iran ceasefire, uncertainty over the Strait of Hormuz and a record low weakening rupee.

At close, the Sensex declined 251.61 points, or 0.33 per cent, to settle at 77,017.79, while the Nifty fell 86.50 points, or 0.36 per cent, to close at 24,032.80.

Top gainers & losers

Among Sensex constituents, ICICI Bank emerged as the top loser, falling 1.53% to Rs 1251.45. Eternal followed with a 1.37% drop, while Tech Mahindra, Axis Bank, Bharti Airtel and Larsen & Toubro (L&T) fell 1.28%, 1.20%, 1.08% and 1.07%, respectively.  

“Elevated crude prices continued to pressure the rupee, which slipped to record lows. Despite these headwinds, the ongoing earnings season, with results slightly ahead of expectations, provided some support and triggered selective bottom-fishing,” said Vinod Nair, Head of Research, Geojit Investments Ltd.

“Sectoral trends were mixed, with buying seen in FMCG, IT, pharma, autos, and metals, while realty and financials remained under pressure,” Nair added.

While Mahindra & Mahindra (M&M), UltraTech Cement and Bajaj Finserv were among the gainers on the 30-pack index, which rose up to 3.85%. 

Five stocks, namely, ICICI Bank, HDFC Bank, Bharti Airtel, L&T, and Axis Bank contributed largely to the Sensex’s drop.  

Among sectoral indices, the BSE Energy index plunged 0.42% to close at 12,016.47, while the BSE Bankex index slipped 0.58% to settle at 61,431.04. 

“Notably, the trading range has further narrowed over the last four sessions, with a clear Bollinger Band squeeze visible on lower timeframes. This indicates that Nifty is likely to witness an expansion in volatility, potentially leading to a decisive trending move in the next 2–3 trading sessions,” said Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities.