Equity benchmark indices Sensex and Nifty slipped on Tuesday, ending a two-day winning streak, as selling pressure emerged in information technology stocks due to profit booking.
Around 11:15 a.m., the Sensex was marginally lower by 13.82 points, or 0.016 percent, at 85,553.66, after dropping nearly 200 points from its intraday high. The Nifty also edged down 3.85 points, or 0.015 percent, to trade at 26,168.55.
One of the key reasons for the decline was selling by Foreign Institutional Investors. FIIs offloaded equities worth ₹457.34 crore on Monday, reversing their buying trend seen over the previous three sessions. Additionally, domestic markets witnessed profit booking across sectors following a sharp rally over the last two days, with IT and consumer durables stocks leading the losses.
Volatility was further influenced by the weekly expiry of Nifty index derivatives, which often triggers sharp intraday movements as traders square off positions. Caution also prevailed due to a holiday-shortened trading week, resulting in lower participation.
From a technical perspective, Anand James of Geojit Investments noted that while a breakout above the declining trendline has improved the outlook toward 26,300 levels, a fall below 26,100 could push the market into a sideways phase.
