Indian stock markets, which have witnessed a remarkable growth trajectory, saw a pause in their upward momentum on Tuesday. After scaling new heights in the early trading hours with the BSE Sensex soaring past the 75,000 level for the first time, and the NSE Nifty setting its own record, investors decided to cash in on the gains, leading to a marginal drop in both indices by the session’s close.
The 30-share BSE Sensex, which had earlier in the day notched an all-time intra-day high by leaping 381.78 points, or 0.51%, to 75,124.28, eventually culminated the trading session slightly lower. It shed 58.80 points, a subtle dip of 0.08%, to settle at 74,683.70. Similarly, the broader NSE Nifty, after an initial spurt of 102.1 points or 0.45%, to hit its never-seen-before mark of 22,768.40, reversed direction to close down by 23.55 points or 0.10%, ending the day at 22,642.75.
Within the Sensex ensemble, several prominent stocks experienced a downturn. Titan, Reliance Industries, Asian Paints, Tech Mahindra, IndusInd Bank, UltraTech Cement, Wipro, and ITC were found trailing on the charts by the end of the trading day. Nonetheless, there was a mixture of performance, as companies like ICICI Bank, Infosys, Bajaj Finserv, Tata Steel, Axis Bank, Bajaj Finance, Nestle, and Mahindra & Mahindra held their ground amid the sell-offs and finished positively.
Asian markets sent back mixed signals, with Tokyo, Shanghai, and Hong Kong closing on a positive note, while Seoul took a contrasting downtrend. European markets were observed mostly in the negative spectrum during the trade hours. On the other side of the Atlantic, Wall Street had exhibited a mixed demeanor in its previous session.
Market analysts pointed to global factors influencing the cautious stance adopted by the Indian traders. “The Indian market reached a fresh intra-day peak before seeing profit-booking at higher levels in anticipation of tomorrow’s key US inflation data, which carries weight in determining future rate cuts by the US Fed,” remarked Vinod Nair, Head of Research at Geojit Financial Services. Recent US employment and manufacturing data surpassed expectations, potentially recalibrating forecasts regarding interest rate adjustments through the current year.
In the investing landscape, Foreign Institutional Investors (FIIs) had pulled out equities summing to a net of Rs 684.68 crore on the preceding Monday, as per the data from the stock exchanges.
The price of Brent crude oil, considered a global benchmark, demonstrated a slight uptick of 0.18% reaching USD 90.54 per barrel.
It’s important to highlight the preceding day’s performance, where the BSE benchmark surged 494.28 points or 0.67%, marking a new closing peak at 74,742.50. Correspondingly, the NSE Nifty had also made notable gains of 152.60 points or 0.68% to wrap up at 22,666.30.
Capturing the essence of the session, the pullback in the Indian stock markets signified a natural breather in an otherwise remarkable rally. With investors remaining vigilant of international economic cues, particularly from the United States, the ebb and flow of the stock indices underscore a dynamic interplay of global sentiments and local market dynamics. The markets, thus, continue to dance to the rhythm of both domestic variables and the pulses transmitted from financial movements across the globe.
