Indian stock indices closed slightly lower on Tuesday, marking the third straight session of profit booking. The market largely held steady throughout the day before ending on a marginal decline.
The Sensex ended the session at 84,266.29 points, down 33.49 points or 0.040 per cent, while the Nifty closed at 25,796.90 points, a decrease of 13.95 points or 0.054 per cent.
Among the Nifty 50 stocks, Tech Mahindra, Mahindra and Mahindra, Britannia, Infosys, and Adani Enterprises were the top performers, while Indusind Bank, ONGC, Asian Paints, Bajaj Auto, and Tata Steel registered losses, according to NSE data.
In the previous session, Sensex had dropped over 1,000 points.
Rakesh Vyas, Co-Chief Investment Officer & Portfolio Manager at Quest Investment Advisors, said, “Rate cuts across major geographies will continue to drive higher liquidity in the system, encouraging foreign capital inflows into economies with strong growth prospects.” He added that India’s projected corporate earnings growth in the mid to high teens would keep it an appealing destination for investors.
Prior to this recent downturn, Indian stocks had gained momentum from the US Federal Reserve’s decision to cut interest rates by 50 basis points. The rate cut has drawn capital towards investment destinations like India, where growth prospects remain robust.
Foreign portfolio investments (FPIs) in Indian equities remained positive for the fourth consecutive month through September, providing some support to the indices.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, remarked on the broader global market dynamics: “The recovery in the Chinese economy has led to significant fund flows into Chinese stocks recently. The Shanghai Composite delivered 20 per cent returns in the last five days, while Hang Seng recorded 19.45 per cent gains in the past month. This momentum is attracting FIIs, though it remains uncertain how long this trade will continue.”
(ANI)