The stock market witnessed a muted trading session on Tuesday, with benchmark indices closing marginally higher after a volatile day marked by profit-booking and sectoral divergences. The Sensex settled at 78,017.19, up a modest 32.81 points or 0.04 per cent, while the Nifty 50 ended at 23,668.65, inching up 10.30 points or 0.04 per cent.

The day’s trading was characterized by an initial surge following positive global cues, particularly signals from former President Trump about potentially softer reciprocal tariffs, which quickly gave way to profit-taking as investors consolidated their positions ahead of the financial year-end and the upcoming April 2 tariff deadline.

IT stocks emerged as the standout performers, gaining nearly 1 per cent, buoyed by expectations of softer trade policies and recent value corrections. In contrast, sectors like Defence and PSU Banks experienced notable selling pressure, with both indices declining approximately 2 per cent.

UltraTech Cement led the gainers, surging 3.21 per cent to close at ₹11,406, followed by Trent with a 2.54 per cent increase. Other top performers included Bajaj Finserv (2.18 per cent), Grasim (2.12 per cent), and Infosys (1.66 per cent). On the flip side, IndusInd Bank was the top loser, tumbling 5.12 per cent to ₹635.15, with Dr. Reddy’s and Adani Enterprises also witnessing significant declines.

The broader market reflected increased caution, with the Nifty Midcap 100 dropping 1.06 per cent and the Nifty Smallcap 100 retreating 1.56 per cent. The market’s advance-decline ratio turned negative, with 2,983 stocks declining compared to 1,085 advancing.

Currency markets saw the rupee breaking its nine-day winning streak, closing at 85.77, down 0.22 per cent. Dilip Parmar from HDFC Securities noted, “The increased demand for dollars from importers, coupled with the greenback’s recovery, weighed on the rupee.”

Commodity markets remained dynamic, with gold trading near $3,020 per ounce, supported by ongoing geopolitical uncertainties. Jateen Trivedi from LKP Securities highlighted that “the ongoing uncertainty surrounding tariffs has kept demand for safe-haven assets elevated.”

Technical analysts suggest the market is entering a consolidation phase. Shrikant Chouhan from Kotak Securities warned of potential weakness, stating, “A shooting star formation has formed, indicating potential weakness from current levels.” He recommended 23,600/77,700 as the key support zone for day traders.

The session also saw significant regulatory developments, with SEBI approving measures to strengthen governance and improve market transparency. The board, under new chair Tuhin Kanta Pandey, raised the Foreign Portfolio Investor (FPI) disclosure threshold and relaxed certain compliance norms.

Looking ahead, market participants will be closely monitoring upcoming economic data, including US GDP numbers and the Core PCE Price Index, which are expected to provide further directional cues.

“After a sharp rally, markets might consolidate in the coming sessions as we approach the financial year-end and tariff deadline next week,” noted market experts, suggesting investors should prepare for potential volatility.