FX.co ★ Sensex Falls for 3rd Day

India’s BSE Sensex fell about 0.6% to close at 77,235.5 on Tuesday, its lowest level since late July and the third consecutive session of losses. The decline mirrored a broader risk-off sentiment as investors weighed the effects of elevated energy prices, geopolitical uncertainty, and rising global bond yields.

Market jitters intensified amid reports that US President Donald Trump would not extend the 60-day ceasefire, alongside indications that Iran was adopting a more aggressive posture. Foreign institutional investors continued to be net sellers of Indian equities on Monday, adding to the downward pressure.

Weakness was broad-based across sectoral indices, with IT and FMCG stocks leading the declines. Asian Paints was the top laggard, dropping 2.4%, followed by Infosys (-2%), HCL Tech (-1.9%), Bharti Airtel (-1.8%), TCS (-1.5%), and Hindustan Unilever (-1.4%).

Major banking stocks also retreated after the Reserve Bank of India announced it would close its special FCNR(B) swap facility one month earlier than planned. Kotak Mahindra Bank, SBI, ICICI Bank, and HDFC Bank fell between 0.5% and 1.1%.