The winning streak of stock markets came to a halt on Tuesday, as the benchmark Sensex saw a decline of 199 points. This dip was attributed to profit-taking in IT and oil shares, coupled with weak global trends. The 30-share BSE Sensex closed at 73,128.77, down by 0.27%. Despite opening lower, the index reached an all-time intra-day high of 73,427.59 in late-morning deals. However, it couldn't sustain these gains, slipping by 0.50% to a low of 72,960.29 in the second half due to profit-taking in the broader market.
The Nifty also touched an all-time intra-day high of 22,124.15 before closing at 22,032.30, down by 0.29%. Over the last five days, the BSE benchmark surged by 2.76%, gaining 1,972.72 points, while the Nifty jumped 2.71%, adding 584.45 points. Both indices had closed at record highs on Monday.
Vinod Nair, Head of Research at Geojit Financial Services, noted, “The broad market exhibited profit-booking following a good performance by the IT sector amid weak global cues. Investors are contemplating whether the current euphoria in markets has gone farfetched, especially with elevated domestic valuations in mid & small caps.”
HCL Tech experienced the most significant drop among Sensex firms, falling by 2.05%. Other losers included Wipro, NTPC, Reliance Industries, Infosys, Tech Mahindra, and TCS. IT stocks saw a decline due to profit-taking after recent strong rallies.
On the positive side, Tata Steel, Titan, Maruti, Larsen & Toubro, ITC, and JSW Steel were among the gainers. HDFC Bank gained 0.42% ahead of announcing its financial results, revealing a 34% jump in standalone net profit for the October-December period.
Ajit Mishra, SVP – Technical Research at Religare Broking Ltd, mentioned, “The profit-taking in the IT, realty and energy majors were weighing on the sentiment while metal and FMCG showed resilience. The broader indices too inched lower and lost nearly half a percent each.”
In the global market scenario, Asian markets in Seoul, Tokyo, and Hong Kong settled lower, while Shanghai ended in positive territory. European markets were trading lower, and US markets were closed on Monday for Martin Luther King, Jr. Day.
For a sustained upward movement in the Nifty index towards 22,300 levels, analysts suggest breaking decisively above the 22,150 mark. The immediate support on the downside is identified at 21,950. Foreign Institutional Investors (FIIs) bought equities worth Rs 1,085.72 crore on Monday, according to exchange data.
(With Agency Inputs)
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