Indian stock markets opened lower on Tuesday, mirroring losses in other Asian markets, as rising U.S. Treasury yields dampened investor sentiment in emerging markets. The Nifty 50 fell 0.51% to 23,522.9 points, while the BSE Sensex dropped 0.62% to 77,761.62 by 9:46 a.m. IST.

The information technology sector emerged as the biggest loser, with the Nifty IT index sliding 2.2%. IT companies, heavily reliant on U.S. revenue, were hit hard, making up four of the top five decliners on the Nifty 50. The sell-off follows the U.S. Federal Reserve's recent signal of fewer-than-expected interest rate cuts in 2025, which has pushed Treasury yields higher and reduced the attractiveness of Indian markets for foreign institutional investors (FIIs).

FIIs have been consistent sellers over the past ten sessions, offloading shares worth approximately $2.8 billion. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted, "The high U.S. bond yield and a strong dollar have ensured that foreign investors will continue to sell on every rise."

Broader market indices also faced losses, with small-cap and mid-cap indices each declining by 0.5%.

In corporate developments, Adani Wilmar shares plummeted by 7.1% after the Adani Group announced its exit from a $2 billion consumer goods joint venture with Singapore’s Wilmar. The deal's per-share valuation reflected a 7.2% discount to the stock's previous close, raising concerns over the joint venture's future direction.

Meanwhile, Rail Vikas Nigam Ltd. gained 3% after emerging as the lowest bidder for a Central Railway project worth ₹1.37 billion, providing some relief amid the broader market weakness.

Asian markets also fell, with the MSCI Asia ex-Japan index shedding 0.5%, underscoring global market pressures stemming from elevated U.S. Treasury yields.