Domestic equity markets snapped their winning streak on Tuesday, with benchmark indices edging lower amid broad-based weakness led by pharmaceutical stocks. The correction comes after multiple sessions of gains, as investors turn cautious ahead of key earnings and global cues.
As of 10:48 am, the BSE Sensex was down 213.43 points at 80,583.41, while the NSE Nifty50 slipped 72.40 points to 24,388.75. Broader indices saw sharper cuts, with the Nifty midcap and smallcap indices falling around 1% each, reflecting risk-off sentiment in domestic-focused sectors.
Out of the 13 major sectoral indices, 11 were in the red. Pharma stocks were the worst hit, with the Nifty Pharma index down 1.5% after US President Donald Trump signed an executive order to fast-track approvals for domestic pharmaceutical manufacturing.
The move is seen as a push to reduce reliance on imports — a key risk for Indian drugmakers, who earn a significant portion of their revenues from the US.
Meanwhile, financials also came under pressure, with the Nifty Financial Services index slipping 0.7%. Reliance Industries, which had gained steadily over the past five sessions, dropped 1.2%.
On the flip side, auto stocks provided some support. The Nifty Auto index rose 1%, led by Mahindra & Mahindra, which jumped 3.1% on the back of bullish broker calls. Analysts expect margin expansion in its farm and SUV segments, fueling hopes of a stock re-rating.
Among individual stocks, electric two-wheeler maker Ather Energy made its market debut, listing at a modest 2.18% premium over its IPO price of Rs 321. The Rs 2,981-crore IPO was fully subscribed last week. However, the IPO soon gave up early gains after listing.
Coforge shares climbed 3.5% despite missing earnings estimates for the March quarter, with multiple brokerages reiterating a positive long-term outlook for the IT firm.
“After the recent rally, the market appears to be taking a breather. We’re seeing a shift from broad-based gains to more stock-specific action, driven by corporate earnings and sectoral developments,” said Vinod Nair, head of research at Geojit Financial Services.
