In the barometer index, the S&P BSE Sensex declined 277.93 points or 0.33% to 84,673.02. The Nifty 50 index lost 103.40 points or 0.40% to 25,910.05. In the past six consecutive trading sessions, the Sensex rose 2.08% while the Nifty added 2.04%.

The broader market underperformed the frontline indices. the S&P BSE Mid-Cap index dropped 0.70% and the S&P BSE Small-Cap index tumbled 0.85%. The market breadth was weak.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, added 2.60% to 12.10.

Among the sectoral indices, the Nifty Private Bank index (down 0.03%), the Nifty Consumer Durables index (down 0.08%) and the Nifty Bank index (down 0.11%) outperformed the Nifty 50 index.

Meanwhile, the Nifty Realty index (down 1.91%), the Nifty IT index (down 1.10%) and the Nifty Metal index (down 1.07%) underperformed the Nifty 50 index.

Numbers to Track:

The yield on India's 10-year benchmark federal paper shed 0.20% to 6.523 from the previous close of 6.542.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 86.6100 compared with its close of 88.5900 during the previous trading session.

MCX Gold futures for 5 December 2025 settlement fell 0.77% to Rs 121,976.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.02% to 99.56.

The United States 10-year bond yield fell 0.73% to 4.101.

In the commodities market, Brent crude for January 2025 settlement shed 24 cents or 0.37% to $63.96 a barrel.

Global Markets:

Dow Jones futures are down by 165 points, signaling a negative start for US stocks today.

European market traded lower on Tuesday, as global sentiment softened amid renewed concerns over AI-linked stocks.

Asia-Pacific markets ended lower, led by declines in Japan and South Korea, following a tech-driven sell-off on Wall Street.

Overnight in the U.S., stocks pulled back, plagued once again by declines in tech, as Wall Street awaited key releases this week, including Nvidia earnings and the September jobs report.

The Dow Jones Industrial Average lost 557.24 points, or 1.18%, to close at 46,590.24, as losses in the artificial intelligence chip darling, along with Salesforce and Apple, pushed the blue-chip index lower. The S&P 500 sank 0.92% to end the day at 6,672.41, while the Nasdaq Composite tumbled 0.84% to settle at 22,708.07.

The AI sector faced market pressure, with Nvidia dropping nearly 2% ahead of its third-quarter results scheduled for Wednesday after the market close. This decline, shared by other AI-related stocks, reflected growing investor anxiety regarding stretched valuations within the chipmaker and related technology companies.

The concern also impacted financial institutions linked to the sector. Blue Owl Capital, a private credit lender, shed nearly 6% amid worries surrounding its substantial lending exposure to the ongoing AI data center buildout.