Benchmark stock market indices closed lower on Tuesday as investors took profits following the recent surge on Dalal Street. IT and metal sectors experienced the most significant declines.
The S&P BSE Sensex dropped 324.96 points to finish at 84,625.99, while the NSE Nifty50 decreased by 103.40 points to settle at 25,910.05.
Vinod Nair, Head of Research at Geojit Investments Limited, mentioned that the domestic stock market dipped as investors cashed in on gains after the recent recovery, in line with the subdued global sentiment.
Nair stated, “Anticipation of a potential US Fed rate cut in December has waned, impacting sentiment. IT, metal, and realty stocks fell due to a stronger dollar, though private banks provided some support. Investor focus now shifts to this week’s US jobs data, crucial for the Fed’s policy direction.”
Following the market close on Thursday, Bharat Petroleum Corporation Ltd, Axis Bank, Asian Paints, Titan, and Power Grid emerged as the top gainers on the Sensex. BPCL led the way with a 1.78% increase, followed by Axis Bank with a 1.27% rise. Asian Paints saw a 0.64% climb, Titan added 0.37%, and Power Grid moved up by 0.32%.
Tech Mahindra registered the most significant decline, dropping by 2.23%, while Infosys slipped by 1.46%. Bajaj Finance and Bajaj Finserv recorded declines of 1.26% and 1.25%, respectively. Eternal also fell by 1.15%, contributing to the downward pressure in the late session.
Looking ahead, Nair emphasized that progress on the Indo-US trade deal and a strengthening domestic earnings outlook could boost confidence and propel the market towards crossing the Nifty50 threshold of 26,000.
Ajit Mishra, SVP of Research at Religare Broking Ltd, advised, “Investors should focus on stock selection based on sectoral strength, favoring large-cap and robust mid-cap companies, while adopting a cautious approach amidst the current market volatility.”
(Note: The opinions expressed by experts/brokerages in this article are personal and do not reflect those of the India Today Group. It is recommended to seek advice from a qualified broker or financial advisor before making investment decisions.)