India’s BSE Sensex ended Tuesday’s session virtually flat at 76,944, as investors balanced persistent foreign fund outflows and worries over geopolitics and global inflation against solid domestic macroeconomic data. Oil prices extended their gains amid renewed hostilities involving the US and Iran, stoking fresh concerns about inflation and the interest rate outlook.
On the data front, India’s manufacturing sector expansion eased slightly in August, but overall growth remained strong: the economy expanded 7.8% in the June quarter, surpassing both market expectations and the RBI’s 7% forecast.
Sector-wise, weakness in banking, auto, and healthcare stocks largely offset strength in technology names and select index heavyweights. Maruti Suzuki declined more than 4%, making it the worst performer on the index, after the automaker reported its August sales, which showed exports down over 7% year-on-year. SBIN, IndiGo, Bajaj Finserv, M&M, and Axis Bank also came under pressure, losing between 1.5% and 1.8%.
In contrast, ITC (up 4%), HCL Tech (3.2%), Infosys (2.4%), and Bharti Airtel (2.3%) were among the notable gainers.
