India’s BSE Sensex surrendered early gains to finish about 1% lower at 74,004 on Tuesday, extending losses into a second consecutive session amid a broad-based selloff. Sentiment weakened as investors grew wary of elevated crude oil prices and higher global bond yields ahead of the US Federal Reserve’s policy decision on Wednesday.
On the domestic front, fresh worries over inflation resurfaced after India’s annual consumer price inflation accelerated to 4.82% in August from 4.45% in July, keeping alive the possibility of a future rate hike.
Among the 30 Sensex constituents, Bharat Electronics dropped 6% after analysts highlighted downside risks for defense stocks. Other major laggards included InterGlobe Aviation, Titan, Bajaj Finserv, Adani Ports, Mahindra & Mahindra, and State Bank of India.
In contrast, IT shares outperformed the broader market. HCL Tech surged around 4%, Infosys advanced 3.6%, Tech Mahindra gained 2.3%, and TCS rose 2.2%. HDFC Bank added 1.3% amid optimism over its leadership transition, after the lender said it had submitted two candidates to the central bank for consideration.
