Source: Government of India
Source: Government of India (4)
The Indian stock markets declined on Tuesday as investors opted to book profits following a sharp rally in the previous session. Concerns over the progress of US-China trade talks also contributed to the cautious sentiment, pulling down the benchmark indices after their best performance in over four years.
The BSE Sensex closed 1,281.68 points, or 1.5 per cent, lower at 81,148.22. The NSE Nifty also slipped, ending the day at 24,578.35, down 346.35 points or 1.39 per cent. The correction came a day after markets soared nearly 4 per cent on easing geopolitical tensions between India and Pakistan. Analysts noted that much of Monday’s gains were driven by short covering, leading to profit booking on Tuesday.
Despite the weakness in headline indices, broader market indices managed to hold firm. The BSE Midcap index edged up 0.17 per cent, while the BSE Smallcap index rose 0.99 per cent, suggesting some resilience in mid- and small-cap stocks.
Sectoral performance, however, was mixed. Major indices such as Nifty Auto, Financial Services, FMCG, and IT ended with losses of over 1 per cent. Other segments including Nifty Bank, Metal, Oil and Gas, Realty, and Consumer Durables also ended lower. In contrast, indices tracking PSU banks, media, pharma, and healthcare sectors posted gains, with the Nifty PSU Bank index rising as much as 1.66 per cent.
Among the Sensex constituents, Infosys was the top laggard, falling 3.57 per cent. Eternal, Power Grid, HCL Technologies and TCS also registered losses ranging between 2.88 per cent and 3.4 per cent. On the other hand, Sun Pharmaceutical, Adani Ports, Bajaj Finance, State Bank of India and Tech Mahindra closed with modest gains of up to 1 per cent.
Market volatility eased slightly, with the India VIX dipping 1.05 per cent to 18.20. Analysts noted that geopolitical uncertainties remained on investors’ radar, with the fragile ceasefire between India and Pakistan keeping participants cautious.
“Geopolitical tensions remained in focus as market participants monitored the fragile ceasefire between India and Pakistan, adding to the cautious sentiment,” said Sundar Kewat of Ashika Institutional Equity.
Ajit Mishra, SVP at Religare Broking Ltd, said the decline reflected a sense of caution despite stable global cues and easing regional tensions. “However, we expect the overall tone to remain positive, given the noticeable support in the 24,400–24,600 zone. The focus should remain on identifying key sectors and themes showing relative strength and using intermediate pauses to accumulate quality stocks,” he added.
— IANS