The stock market displayed divergent trends on Tuesday as the benchmark Sensex closed higher while the Nifty ended marginally lower amid range-bound trading. The 30-share BSE Sensex closed at 74,602.12, up 147.71 points or 0.20 per cent, while the broader NSE Nifty 50 ended at 22,547.55, down 5.80 points or 0.03 per cent, extending its losing streak to the sixth consecutive session.

“Today, the Indian stock market closed on mixed note, the benchmark indices, BSE Sensex and NSE Nifty50, showed a mixed performance,” said Vaibhav Vidwani, Research Analyst at Bonanza. “The market remained range bound, influenced by global trends and limited domestic catalysts.”

Broader market indicators showed weakness in mid and small-cap stocks. The advance-decline ratio stood at 0.74 on the BSE, with 1,678 stocks advancing against 2,253 declining and 131 remaining unchanged. Notably, 234 stocks hit their 52-week lows compared to just 49, reaching 52-week highs, signalling underlying pressure.

Bharti Airtel led the gainers on the NSE, surging 2.32 per cent to close at ₹1,638.45. Other top performers included Mahindra & Mahindra, which rose 2.13 per cent to ₹2,767, followed by Bajaj Finance (up 1.40 per cent to ₹8,472), Nestle India (up 1.36 per cent to ₹2,250.50), and Titan Company (up 0.87 per cent to ₹3,200.75).

On the losing side, Dr. Reddy’s Laboratories fell sharply by 3.10 per cent to ₹1,128.50, while Hindalco Industries declined 3.01 per cent to close at ₹622.55. Trent dropped 2.41 per cent to ₹4,944, Hero MotoCorp slipped 1.72 per cent to ₹3,817.85, and Sun Pharmaceuticals decreased 1.70 per cent to ₹1,611.55.

Sector-wise performance was mixed, with Nandish Shah, Deputy Vice President at HDFC Securities, noting, “Sectorally, metals, realty, PSU banks, and oil & gas sectors bore the brunt of the selling pressure. In contrast, media, consumer durables and auto sectors managed to eke out marginal gains.”

The Indian rupee witnessed significant weakness, depreciating 52 paise against the US dollar. “The Indian rupee saw a sharp decline against the US dollar on Tuesday and fell by more than half a percent against the dollar, marking its biggest intraday drop in the past three weeks,” explained Rahul Kalantri, VP-Commodities at Mehta Equities Ltd. “The drop in the rupee against the dollar came after US President Trump’s statement on tariffs related to Mexico and Canada.”

In the commodities market, gold showed positive movement in domestic trading. “Gold traded positively in MCX with gains of ₹300 as rupee weakness below 87.10 provided support to domestic prices,” said Jateen Trivedi, VP Research Analyst at LKP Securities.

Technical analysts remain cautious about the market’s immediate outlook. Shrikant Chouhan, Head-Equity Research at Kotak Securities, observed, “Current market texture as non-directional, perhaps as traders are waiting for a breakout on either side. On the higher side, 22600/74800 would be the immediate breakout level for the bulls.”

Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Intermediates, added, “Technically, on the daily chart, Nifty has formed an inverted hammer candlestick pattern, indicating buying interest around 23,500 levels. As long as the index respects 23,500 levels, a pullback rally towards 22,700-22,800 could be possible.”

The volatility index, India VIX, cooled off by 5.03 per cent to 13.72, indicating reduced market volatility despite the mixed session. However, market experts advise caution ahead of the monthly derivatives expiry.

“On Thursday, markets will take cues from global trends in early trade, followed by a shift in focus to the monthly expiry of February’s derivatives contracts. We maintain our ‘sell on rise’ stance on the benchmark while advising a balanced approach in stock positions,” recommended Ajit Mishra, SVP Research at Religare Broking Ltd.

With FII selling continuing to pressure the market and global uncertainties looming large, investors are advised to remain cautious in the near term while looking for quality stocks at attractive valuations for potential accumulation.