FX.co ★ Sensex Falls for 3rd Day

On Tuesday, India's BSE Sensex relinquished its early gains, ending approximately 0.4% down at 84,587. This marked the third successive day of profit-taking by investors, following recent record peaks, in anticipation of the monthly derivatives expiry. The market sentiment remained cautious as foreign capital outflows resumed. Traders also awaited clarification on a potential rate cut by the Federal Reserve and developments in India-US trade talks. The Reserve Bank of India's monthly report, released on Monday, suggests that domestic tax reductions and this year's interest rate cuts are poised to strengthen private investments and GDP growth. The IT and oil & gas sectors were significant laggards, impacted by weak global technology sentiment and challenges faced by energy companies concerning refining margins. However, metals and PSU banks demonstrated resilience. Notable decliners included Trent, Tata Motors PV, HCLTech, and Infosys, with losses ranging from 1% to 1.6%. Conversely, BEL, SBI, Tata Steel, and Eternal were among the top gainers, with increases of up to 1.5%.