The BSE Sensex and the Nifty fell on Tuesday, influenced by mixed global sentiments. The Nifty 50 dropped 0.81% to 24,100.50, while the Sensex lost 0.75% to settle at 78,873.
HDFC Bank was the biggest loser on the Sensex, with its shares falling 3% after the MSCI rebalancing announcement. The rebalancing revealed that the bank’s weight would increase in two phases rather than the anticipated single phase.
Despite the overall decline, stocks of Titan Company, Apollo Hospitals, Dr. Reddy’s Laboratories, Tata Consumer Products, and HCL Tech were the top gainers. BPCL, Shriram Finance, HDFC Life Insurance, and Tata Motors joined HDFC Bank among the top laggards.
Sector-wise, the Nifty Financial Services, Nifty Realty, and Nifty Private Bank indices fell by up to 1%. In contrast, the Nifty Consumer Durable index posted a rise of 1.7%.
“The domestic market dipped into the red during the latter half of the session, largely due to mixed global sentiments. Recent IIP data indicates lackluster growth in the major manufacturing sector. Additionally, persistent selling by Foreign Institutional Investors (FIIs) and elevated valuations are contributing to the decline,” said Vinod Nair, Head of Research at Geojit Financial Services.
Foreign Portfolio Investors (FPIs) offloaded Indian stocks worth ₹17,404 crore during the month, according to data from the National Securities Depository Limited (NSDL).
“Despite minimal impact from recent adverse developments, market focus is shifting towards underlying earnings growth, which remains bleak this quarter. A failure to show resilience in the coming quarters could lead to downgrades,” Nair added.
V.L.A. Ambala, Co-founder of Stock Market Today (SMT), said, “The broader market appears to be overbought and is in need of a correction. Factors such as ongoing political tensions, conflict in the Middle East, surging inflation, and a projected rate hike by the RBI are expected to drive this correction.”
“Given these conditions, the Nifty Index is expected to find support around the 24,000 to 23,830 levels and face resistance between 24,120 and 24,225 in the next trading session,” she added.
“India’s premium valuation is supported by stable political leadership under Prime Minister Narendra Modi, steady GDP growth of 6-7%, controlled inflation, stable currency, and substantial infrastructure development,” Varun Aggarwal, Managing Director of Profit Idea, said.
(With ANI input)