Indian equities finished little changed on Tuesday, with the Sensex and Nifty ending flat as a pullback in IT shares ended a two-session rally. The market also came under pressure as foreign investors turned net sellers and investors found few fresh catalysts heading into the year-end.
The Sensex slipped 42 points, or 0.05%, to close at 85,524.84, while the Nifty 50 edged up 5 points, or 0.02%, to finish at 26,177.15.
On the 30-share Sensex, losses were led by Infosys, Bharti Airtel, Adani Ports, Sun Pharma and Tech Mahindra, each falling between 1% and 1.5%. Losses were capped by advances in ITC, UltraTech Cement, Tata Steel, HDFC Bank and NTPC, which rose in a similar range.
Broader markets showed a mixed picture, with small-cap stocks climbing 0.4% while mid-cap shares ended largely unchanged.
IT stocks declined 0.8%, retreating after a 3.7% rise over the previous four sessions. The sector had been supported by a weaker rupee, still hovering near record lows, and expectations of a U.S. interest-rate cut in 2026, moves that could lift sentiment and client spending for export-oriented companies.
Shares of Ambuja Cements rose 1.3% after the company approved the merger of ACC and Orient Cement, a move it said is expected to result in about 10% value accretion for Ambuja’s shareholders.
"Going forward, investors are positioning for the next earnings season and monitoring evolving Fed policy expectations, as rate‑cut probabilities are slowly inching up for the January meeting. While an improving domestic demand outlook provides underlying support, uncertainty around global trade negotiations and the trajectory of the rupee will continue to influence sentiment," said Nair.
European shares edged higher in early trade, U.S. stock futures were little changed, and gold touched a fresh record just below $4,500 an ounce.
Delayed U.S. economic releases following a record government shutdown were in focus in a holiday-shortened week.
MSCI’s world index rose 0.2%, nearing recent highs, while Asia-Pacific stocks outside Japan gained 0.4%. Japan’s Nikkei closed flat.
Overnight, Nvidia shares rose after Reuters reported the company plans to ship its second-most powerful AI chips to China ahead of the Lunar New Year. China’s CSI 300 added 0.2%.
Gold and silver hit record highs, buoyed by safe-haven demand amid rising geopolitical tensions linked to U.S. action involving Venezuelan oil shipments.
Brent crude futures edged up 7 cents to $62.14 a barrel by 0959 GMT, while U.S. West Texas Intermediate crude rose 4 cents to $58.05.
The dollar index, which measures the greenback against a basket of six major currencies, was down 0.34% at 97.95.