Stock market today: Why Sensex, Nifty are falling again

Indian equity benchmarks remained under pressure in afternoon trade on Tuesday, as a combination of global uncertainty, budget-related caution and profit-booking weighed on investor sentiment.

The benchmark BSE Sensex resumed its fall after a single-day halt and slipped over 550 points, while NSE Nifty traded below the 25,650 mark. At around 2:17 pm, Sensex was trading at 83,314.78, down 563.39 points or 0.67 per cent. The Nifty stood at 25,629.85, lower by 160.40 points or 0.62 per cent.

Ravi Singh, Chief Research Officer at Mastertrust, said the overall market outlook remains cautiously optimistic ahead of the Union Budget. "The overall market perspective remains cautiously optimistic ahead of Budget, with investors generally anticipating that the government's pro-growth and reform-oriented policy will be maintained," Singh said. He added that markets are looking for sustained support for capital expenditure, infrastructure, manufacturing and job creation, while maintaining fiscal prudence.

Singh cautioned that investors are also mindful of key risks. These include global factors such as crude oil price volatility, geopolitical developments and global interest-rate trends, along with concerns around fiscal consolidation and potential changes in capital market or capital gains taxation. He noted that while budget announcements could trigger short-term volatility, the medium-term market direction would depend on the balance between growth support, fiscal restraint and policy stability.

Commenting on global cues, VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said geopolitical developments and actions by former US President Donald Trump continue to influence markets. He pointed to Trump's "weaponisation of tariffs" and its impact on global trade, particularly for countries facing penal tariffs. 

Vijayakumar highlighted Trump's statement that the US would impose 25 per cent tariffs on countries trading with Iran as a signal that such measures would persist.

He also flagged concerns over policy unpredictability in the US, noting Trump's criticism of US Federal Reserve Chair Jerome Powell. "This unprecedented, unstable and unpredictable behaviour of the US president will continue to weigh on markets," Vijayakumar said. From an Indian perspective, he underlined the importance of a US–India trade agreement, adding that recent market rebounds reflected sensitivity to trade-related signals.

On the technical front, Ponmudi R, CEO of Enrich Money, said the Nifty's recent recovery attempt failed due to profit-booking. He noted that the 50-day exponential moving average near 25,895 is acting as immediate resistance. He added that Q3 earnings are likely to drive stock-specific moves in the near term.