Indian benchmark indices opened higher on Tuesday but quickly reversed gains as bank and auto stocks came under pressure, following three straight sessions of losses due to weak earnings and persistent foreign outflows.

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At midday, the Sensex fell by 29.33 points, or 0.04 per cent, trading at 79,466.82, while the Nifty dropped 15.80 points, or 0.07 per cent, to 24,125.50. Market breadth was slightly positive, with 1,736 stocks advancing against 1,555 declines, and 83 stocks remained unchanged. Interestingly, broader market indices outperformed as both the mid-cap and small-cap indices rose by 0.3 per cent and 0.7 per cent, respectively. The broader market has shown significant strength this year, gaining nearly 25 per cent, compared to Nifty's gain of 13 per cent during the same period.

Sector-wise performance highlighted sharp declines in auto and FMCG stocks. Nifty Auto, the biggest laggard, fell one per cent, dragged down by heavyweights such as Tata Motors, Mahindra & Mahindra, Maruti Suzuki, and Bajaj Auto. The FMCG index followed, with major players like Britannia Industries, Nestle India, and Hindustan Unilever trading in the red, contributing to the negative sentiment in the market.

On the upside, Nifty Realty emerged as the best-performing sector, climbing two per cent. A strong rally in stocks like DLF, Macrotech Developers, and Godrej Properties lifted the index, which has surged 26 per cent year-to-date, well ahead of the Nifty's 13 per cent gain.

Healthcare and Pharma indices also managed modest gains, but it wasn’t enough to offset the broader market's downward trend.

Volatility, as measured by India VIX, eased slightly, down one per cent, hovering just above the fourteen mark, indicating a subdued risk perception among investors.