The trends on Gift Nifty also indicate a gap-down start for the Indian benchmark index. The Gift Nifty was trading around 23,171 level, a discount of nearly 267 points from the Nifty futures’ previous close.

Profit-Booking: Investors are cashing in on recent gains, particularly in large-cap stocks, leading to a downturn in key indices. Sectoral Pressures: Banking and IT sectors are facing selling pressure due to mixed financial results and global macroeconomic challenges.

The Sensex and Nifty gained in the previous session amid reports of positive talks between Indian and US officials about a trade deal. Analysts have noted that the focus during today’s trading session will be on upcoming tariff developments and the India-US trade deal outcome.