Tariff worries hit markets; Sensex drops 436 pts Nifty below 25,850

The Indian equity market continued its losing streak for a second session on Tuesday, extending the previous day’s steep downturn amid increased restraint ahead of the Fed’s policy review. The broader sentiment weakened further after the US suggested it could pursue tariffs on India’s rice exports.At close, the Sensex was down 436.41 points or 0.51 percent at 84,666.28, and the Nifty was down 120.9 points or 0.47 percent at 25,839.65. About 2403 shares advanced, 1455 shares declined, and 127 shares unchanged.
Titan Company, Shriram Finance, Adani Enterprises, Eternal, Bharat Electronics were the top gainers on the Nifty, while losers included Asian Paints, Tech Mahindra, Tata Steel, Dr Reddy's Laboratories, Interglobe Aviation.On the sectoral front,IT, auto, metal down 0.3-1 percent, while realty, telecom, capital goods, PSU Bank up 0.5-1 percent.The BSE midcap index added 0.6 percent and smallcap index rose 1.3 percent.
Rupee Close: 
On 9 Dec'25,the Indian rupee pared its initial losses and settled for the day in the positive territory, up 17 paise to close at 89.88 against the US dollar on Tuesday, as American currency and crude oil prices retreated from their elevated levels.Forex traders said the weakness of the US dollar in the overseas market, amid expectations of a US Fed rate cut in December, supported the rupee at lower levels.However, a negative trend in domestic equities and foreign fund outflows weighed on investor sentiment, limiting the local unit's appreciation.Moreover, investors are in a wait and watch mode, and market participants are awaiting clarity from the US Federal Reserve before taking decisive positions.
Trading Guide: 
Vinod Nair, Head of Research, Geojit Investments stated domestic equities opened lower, extending profit booking amid caution ahead of tomorrow’s US Fed policy decision, rupee weakness, persistent FII outflows, and ongoing uncertainty over the US–India trade deal. IT stocks led the decline, while PSU banks, realty, and consumer durables gained, with small caps outperforming other indices.Global sentiment was further pressured by surging Japanese bond yields and expectations of BoJ tightening in its upcoming December meeting. While the markets largely anticipate a 25-bps rate cut by the Fed and a rate hike by the BoJ, forward guidance for 2026 will be critical.In the near term, central bank commentary, currency movement, and FII flows will steer sentiment, while domestic macro resilience is expected to provide a cushion against downside risks.
Market experts recommended five shares to buy on Tuesday-Latent View Analytics, Cantabil Retail India Limited, Gujarat Ambuja Exports, Venus Remedies, and Jindal Stainless.

(Business Correspondent)