India's benchmark Nifty 50 index declined 0.32% to close at 22,345.60 on Tuesday, extending a modest pullback after a recent rally. The index, which tracks 50 of the largest and most liquid stocks on the National Stock Exchange, ended the session 72.10 points lower.
Trading volumes were moderate, with 1.2 billion shares changing hands, compared with the 30-day average of 1.4 billion. The broader NSE 500 index also slipped 0.28%, reflecting broad-based weakness across sectors.
Sectoral performance was mixed, with financials and energy leading the declines. The Nifty Bank index fell 0.51%, pressured by profit-taking in large lenders such as HDFC Bank and ICICI Bank. Energy stocks tracked global oil prices lower, with the Nifty Oil & Gas index down 0.42%. IT services and consumer goods stocks provided marginal support, limiting the overall decline.
Foreign institutional investors (FIIs) were net sellers for the second consecutive session, offloading shares worth $145 million, according to provisional exchange data. Domestic institutional investors (DIIs) remained net buyers, purchasing equities worth $98 million, partially offsetting the outflows.
The rupee strengthened 0.1% against the dollar, trading at 83.15, which provided limited support to export-oriented sectors. Analysts attributed the day's decline to a combination of profit-booking and cautious sentiment ahead of key macroeconomic data releases later this week, including India's February wholesale price index and February trade balance figures.
The Nifty 50 has gained 1.8% over the past month, but remains 2.1% below its January record high of 22,820.50, as investors weigh domestic growth prospects against global economic uncertainties.
