Market Stalemate: Indian Indices See Flat Finish Amid Global Concerns

Indian equity indices closed slightly lower on Tuesday, with the BSE Sensex and Nifty affected by concerns over U.S. tariffs and earnings slowdowns. The Nifty index showed a recovery in the latter half, forming a hammer candlestick pattern. Broader markets underperformed, with sectors witnessing mixed performances.

The Indian equity markets ended Tuesday on a cautious note, as the BSE Sensex and the Nifty posted marginal declines, impacted by the looming Federal Open Market Committee (FOMC) minutes and persistent doubts over U.S tariff issues. The Sensex closed down by 29.47 points, or 0.04%, at 75,967.39, while the Nifty fell by 14.20 points, or 0.06%, closing at 22,945.30.

"The slight dip in blue-chip indices Sensex and Nifty50 was driven by a slowdown in earnings and fears of continued foreign outflows that weighed on investor sentiment," remarked Ameya Ranadive, Chartered Market Technician, CFTe, Sr. Technical Analyst at StoxBox. Market volatility is anticipated to stay heightened due to the tariff-related uncertainties in the US, with broader markets lagging, seeing the Nifty Midcap 100 and Small Cap 100 indices fall by 0.2% and 1.6%, respectively, noted the Bajaj Broking Research Team in its close commentary.

Reports from Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd., conveyed that after an adamant start, the Nifty faced selling pressure initially but rebounded in the latter trading session to close slightly down. A hammer candlestick formation near a crucial support zone suggests underlying strength. As long as the index maintains above the recent low of 22,725, adopting a "buy-on-dips" strategy appears advantageous. The 21-Day Simple Moving Average (DSMA) at 23,240 serves as a short-term resistance; surpassing it firmly would potentially signal a reversal in trends. Across the exchanges, 993 stocks advanced, 2804 declined while 101 stood unchanged.

(With inputs from agencies.)