FX.co ★ Sensex Sees 2nd Day of Losses

India's BSE Sensex experienced a decline of approximately 0.5% on Tuesday, closing at 84,666—its lowest point since November 25. This reduction extends the downward trend from the previous day. Investors maintained a cautious stance ahead of the Federal Reserve's rate decision scheduled for Wednesday, compounded by ongoing uncertainty surrounding a potential trade agreement between the United States and India. In remarks made by U.S. Treasury Secretary Scott Bessent, it was indicated that Washington remains engaged in trade negotiations with India. However, President Trump, during an event at the White House unveiling a multi-billion-dollar agricultural relief package, signaled the possibility of imposing tariffs on rice.

The market was further pressured by continuous selling activity from foreign investors, who have continued their withdrawal trend into December. Cyclical stocks bore the brunt of the selling pressure, with Asian Paints suffering the most significant loss at 4.6%. Other notable decliners included Tech Mahindra, which fell by 2%, HCL Technologies with a drop of 1.8%, Tata Steel down by 1.6%, and Maruti Suzuki India, which decreased by 1.2%. On the contrary, companies like Eternal and Titan showed positive momentum, advancing by 2.3% and 2.1% respectively, followed by Adani Ports and BEL, which gained 1.1% and 1%.