The S&P BSE Sensex fell 297.07 points, or 0.36%, to 82,029.98, while the NSE Nifty 50 dropped 81.85 points, or 0.32%, ending at 25,145.50.
On the 30-stock Sensex, Bajaj Finance, Bharat Electronics, Tata Steel, TCS and NTPC led the declines, slipping between 1.4% and 1.8%.
Broader markets were also under pressure, with small-cap and mid-cap indices down about 0.9% and 0.8%, respectively.
In stock-specific action, LG Electronics India, which is not part of the benchmark indices, made a spectacular debut, listing at a 50% premium to its issue price and closing up 48.2%, the strongest showing for a billion-dollar IPO since Eternal in 2021.
Expert views
Muted start to the ongoing Q2 results and weaker-than-expected inflation data raised concerns about slow demand, intensifying profit booking, said Vinod Nair, Head of Research at Geojit Investments, adding that midcap and smallcap stocks bore the brunt of the sell-off, underperforming large caps while sectoral losses were broad-based.
“Volatility is expected in the short term; however, the market is in a safe zone on a medium-term basis, in anticipation of a rise in demand during the second half of FY26,” said Nair.
Crude impact
Oil prices reversed early gains on Tuesday, falling amid uncertainty over U.S.-China trade tensions and weaker fundamentals flagged by the International Energy Agency (IEA).
Brent crude futures dropped $1.01, or 1.6%, to $62.31 a barrel by 0817 GMT, while U.S. West Texas Intermediate crude fell 95 cents, or 1.6%, to $58.54, with both benchmarks hovering near five-month lows.
Rupee vs Dollar
The Indian rupee hovered near its record low for much of Tuesday as risk appetite waned on renewed U.S.-China trade tensions, though probable central bank intervention kept the currency from breaching its all-time low.
The rupee ended at 88.7975 per U.S. dollar, down 0.14% on the day, just shy of its record low of 88.80.
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Meanwhile, the dollar index, which measures the greenback against a basket of six major currencies, rose 0.14% to 99.41.
as a Reliable and Trusted News Source(with inputs from agencies)