Benchmark stock market indices closed lower on Tuesday, with the IT, auto, and metal sectors witnessing declines that pushed the markets into the red zone. The S&P BSE Sensex ended the day down by 519.34 points at 83,459.15, while the NSE Nifty50 lost 165.70 points to settle at 25,597.65.
According to Gaurav Garg, a Research Analyst at Lemonn Markets Desk, the equity benchmarks faced a downtrend on Tuesday due to weak global cues and ongoing foreign fund outflows. Foreign investors sold off equities worth Rs 1,884 crore on Monday, marking the fourth consecutive day of net outflows. The negative sentiment was further exacerbated by a decline in U.S. futures and weakness in Asian markets, prompting investors to lock in profits after recent tech-driven rallies. The high valuations and muted near-term earnings growth in India continued to deter foreign institutional investors from entering the market.
Notable gainers for the day included Titan, up by 2.28%, followed by Bharti Airtel with a 1.89% increase. Bajaj Finance, Mahindra & Mahindra, and State Bank of India also posted gains of 1.16%, 0.93%, and 0.72%, respectively. However, the broader market trend was negative, with most major stocks slipping into the red.
On the downside, Power Grid Corporation witnessed the most significant decline, falling by 3.13%, followed by Eternal which dropped by 2.79%. Tata Motors DVR, Tata Steel, and Maruti Suzuki also experienced losses of 2.53%, 1.86%, and 1.76%, respectively.
The decline was further fueled by profit booking in metal, auto, and banking stocks, alongside the slip in IT heavyweights TCS and Infosys due to weak U.S. economic data and uncertainties surrounding the Fed’s future actions. Analysts like Garg anticipate a continued downtrend unless the Nifty index surpasses the 25,927 mark, with support levels expected near 25,500 and 25,400.
(Note: The opinions and recommendations expressed in this article are solely those of the experts/brokerages and do not represent the views of the India Today Group. It is recommended to seek advice from a qualified broker or financial advisor before making any investment decisions.)
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