Equity benchmarks tumbled on Tuesday as investors booked profits following Monday’s sharp rally, with IT stocks leading the decline.

The BSE Sensex plunged 1,281.68 points or 1.55 per cent to close at 81,148.22, while the Nifty 50 fell 346.35 points or 1.39 per cent to end at 24,578.35.

The selloff came despite easing geopolitical tensions between India and Pakistan and relatively stable global cues. Markets opened marginally lower, with the Sensex at 82,249.60 and Nifty at 24,864.05, before witnessing aggressive selling pressure throughout the session.

“Today, the benchmark indices witnessed profit booking at higher levels,” said Shrikant Chouhan, Head-Equity Research, Kotak Securities. “On daily charts, it has formed a bearish candle, which supports temporary weakness. However, the short term texture of the market is still in to the positive side.”

Information technology stocks were the worst hit, with the sector index plummeting nearly 2.5 per cent. Major IT companies featured prominently among the top losers, with Infosys dropping 3.63 per cent to ₹1,567.90, HCL Technologies falling 3.02 per cent to ₹1,619.90, and TCS declining 2.83 per cent to ₹3,518.00.

FMCG and auto sectors also faced significant selling pressure, while PSU banks, pharmaceutical, and defense stocks showed resilience. In particular, the defense index rallied 4.10 per cent, with Bharat Electronics Limited (BEL) emerging as the top Nifty gainer, surging 4.06 per cent to ₹335.90.

Other top gainers included Jio Financial Services (up 1.83 per cent to ₹267.70), Hero MotoCorp (up 1.77 per cent to ₹4,055.50), Dr. Reddy’s Laboratories (up 1.04 per cent to ₹1,208.00), and Sun Pharmaceutical Industries (up 0.95 per cent to ₹1,702.20).

Besides IT stocks, other major losers included Eternal E-Commerce (down 3.34 per cent to ₹231.50) and Power Grid Corporation (down 3.19 per cent to ₹299.20).

“The dip in the index reflects caution among participants despite easing geopolitical tensions and stable global cues,” noted Ajit Mishra, SVP, Research, Religare Broking Ltd. “However, we expect the overall tone to remain positive, given the noticeable support in the 24,400–24,600 zone.”

Broader markets outperformed frontline indices, with the Nifty Midcap 100 index rising 0.19 per cent to 55,520.70, while the Nifty Bank index declined 0.80 per cent to 54,940.85. Market breadth remained positive with 2,559 stocks advancing against 1,402 declines on the BSE. Seventy-six stocks hit 52-week highs, while 30 touched 52-week lows.

In currency markets, the Indian rupee appreciated, trading higher by 13 paise at 85.25 against the US dollar. “Rupee traded higher by 13 paise at 85.25 against the US dollar, supported by a softer dollar index, which slipped to 101.564, down 0.205 points,” said Jateen Trivedi, VP Research Analyst at LKP Securities.

However, Dilip Parmar, Senior Research Analyst at HDFC Securities, noted that the currency “relinquished intraday gains as domestic equities weakened and traders unwound their long positions.” He added, “Looking ahead, the USDINR spot rate is expected to encounter resistance around 86.30 and find support near 84.70.”

In commodities, gold prices rebounded with gains of ₹1,100 to ₹94,000 on the MCX, while crude oil traded firm at ₹5,335 with 0.75 per cent gains.

Looking ahead, market participants await the US CPI data due later in the evening, which could influence the Federal Reserve’s rate outlook and provide direction to global markets.

“The index slipped lower as traders booked short-term profits. However, sentiment is likely to remain positive in the near term, despite some profit-taking following the recent sharp rise,” said Rupak De, Senior Technical Analyst at LKP Securities. “In the short term, the index may continue its upward movement with the potential to reach 25,350. On the downside, support is placed at 24,400.”

Technical analysts suggest the Nifty could face immediate resistance in the 24,800-25,000 zone, while 24,500 would act as immediate support. Bajaj Broking Research expects the index to “maintain positive bias and gradually head higher towards 25,200–25,300 levels in the near term,” provided it sustains above the crucial 24,450-24,550 support range.

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Published on May 13, 2025