FX.co ★ Sensex, Nifty Extend Losses in Early Trade

The BSE Sensex dropped by 335 points, equating to a 0.4% decline, settling at 85,307 during Tuesday morning's trading session. This downturn continued the trend from the previous session as investors moved to secure profits following the index's brief flirtation with record highs. The broader market echoed an overnight slump on Wall Street, with the Nifty 50 index also decreasing by 0.4%. Meanwhile, small-cap stocks and mid-cap stocks edged down by 0.3% and 0.1%, respectively. Persistent foreign capital outflows further weighed on the market. Nonetheless, factors such as strong GDP growth, the prospect of rate cuts by the Reserve Bank of India in Friday's policy meeting, and anticipation of monetary easing by the Federal Reserve next week—where over 85% of predictions favor a 25-basis-point cut—helped mitigate the market's decline. Leading the downturn were banking, financial services, and auto stocks, with major decliners being ICICI Bank (-1.2%), HDFC Bank (-1.1%), Tata Motors (-1.0%), Bajaj Finserv (-0.8%), and Axis Bank (-0.8%).