Indian stock market settles lower amid profit booking, FII selling

MUMBAI: The domestic equity indices ended lower on Tuesday amid profit booking, FII outflow and concerns ahead of the RBI's key policy meet this week.

Sensex settled at 85,138.27, down 503.63 points or 0.59 per cent. The 30-share index started the session lower at 85,325.51 against last session's closing of 85,641.90. The index declined further amid selling in banking, IT, and other heavyweights, touching an intra-day low at 85,053.0.

Nifty closed at 26,032.20, down 143.55 points or 0.55 per cent.

"Domestic markets continued to witness profit booking amid worries over the weakening rupee and persistent FII outflows. Meanwhile, the NSE’s sectoral index overhaul in line with SEBI regulations led to corrections in major banking counters," said analysts.

In the near term, fading expectations of an RBI rate cut owing to strong GDP data and the uncertainty around US-India trade discussions may keep investors on edge, the analysts added.