After a three-day surge, benchmark indexes fell on Tuesday, with the Sensex losing 407 points in early trade, pulled down by selling in index heavyweights Infosys, TCS, and HDFC.

The Sensex was down 406.66 points at 55,519.08. The NSE Nifty dropped 119.4 points to 16,542.

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Titan, Infosys, HDFC, HCL Technologies, Hindustan Unilever, TCS, Sun Pharma, RIL, and Kotak Mahindra Bank were the main laggards in the Sensex pack. M&M, Tata Steel, Power Grid, Maruti Suzuki, and NTPC, on the other hand, gained.

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Markets in Seoul, Shanghai, Hong Kong, and Tokyo were all quoting with advances elsewhere in Asia. On Monday, the stock markets in the United States were closed for a holiday.

The Sensex rallied 1,041.08 points or 1.90% to settle at 55,925.74 on Monday. The Nifty jumped 308.95 points or 1.89% to close at 16,661.40.

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According to stock exchange statistics, foreign institutional investors became net purchasers on Monday, buying shares worth Rs 502.08 crore.

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“The dominant factor determining the market direction, going forward, would be the trend in the US market, which, in turn, would be determined by the inflation in the US and the Fed’s response to it.

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“A major headwind for the Indian economy and markets is crude spiking above USD 120 on EU sanctions on Russian oil,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

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Meanwhile, Brent crude, the international oil standard, rose 0.91% to USD 122.78 per barrel. The rupee fell 13 paise to 77.67 per dollar in early trade on Tuesday, driven down by a rise in crude oil prices.