FX.co ★ Sensex Ends Lower for 3rd Day

On Tuesday, India's BSE Sensex continued its decline, closing around 1% lower at 81,271, marking three consecutive sessions of losses. The downturn was led by sectors such as automobiles, private banks, financials, and healthcare, with technology firms relinquishing early gains to finish approximately 0.5% down. Investors remained attentive to potential trade negotiations and corporate developments. Caution was prevalent among both foreign and domestic investors, resulting in the first simultaneous sell-off in more than a month. Among individual stocks, Eternal experienced the steepest drop, sinking over 4% after Jefferies warned of a possible MSCI weight reduction risk related to the company’s planned transition to an Indian Owned & Controlled Company (IOCC), possibly leading to outflows up to $650 million. Conversely, Tata Steel rose by 1.3%, as sentiment in the metals sector improved following China's cut in key lending rates. Infosys saw a modest increase, closing with a 0.1% gain.