According to reports, Tuesday’s stock market fall in India was mostly driven by equities in the financial and IT sectors.
The drop in stocks came after a short rise on Monday that saw the Nifty 50 surpass 25,000.
The BSE Sensex declined 0.95% to 81,409.67, and the Nifty 50 fell 0.88% to 24,780.95 as of 10:40 a.m. IST.
Recent patterns of profit-taking close to key thresholds of resistance are consistent with the above leave.
“Since there are not enough favorable triggers, investors are once again booking profits around the 25,000 range,” stated Dharmesh Kant, Head of Equity Research at Cholamandalam Securities.
Red for All 13 Sectors; Declining for Broader Markets. Every significant sectoral index finished lower. The market as a whole fell as major IT and financial equities each fell about 1%.
The Nifty Midcap 100 was down 0.3% and the Nifty Smallcap 100 went down 0.1%.
Experts Vijit Jain and Surendra Goyal of Citi Research pointed out that the Nifty’s 20x ahead P/E valuation restricts additional potential.
They underlined the fact that subsequent gains will depend on GDP and demand rising.
All Sectors in Red as Analysts Caution on Valuation
As key economic data approaches, global cues remain weak.
On Tuesday, market sentiment around the world stayed cautious, especially since U.S. markets remained closed on Monday due to a holiday.
Meanwhile, the MSCI Asia ex-Japan index rose 0.5%, reflecting investor uncertainty.
Because there are no major global triggers at the moment, investors are now shifting their focus to upcoming economic indicators.
In particular, markets are awaiting the U.S. Federal Reserve’s meeting minutes, which could provide valuable insights into the central bank’s outlook on interest rates.
Additionally, India’s fourth-quarter GDP figures are expected later this week, followed by the Reserve Bank of India’s interest rate decision on Tuesday.
Together, these updates will likely play a critical role in shaping the market’s next direction.
Weak Global Cues and Key Economic Data in Focus
InterGlobe Aviation dropped 3% after co-founder Rakesh Gangwal sold shares worth $1.36 billion, which unsettled investors.
Meanwhile, Brainbees Solutions, the parent company of FirstCry, fell over 4% after it reported higher fourth-quarter losses compared to the previous year.
As a result, financial analysts expect the market to remain flat for now, since stock prices are already high and no strong new triggers are driving momentum.
Going forward, they believe profit-taking will likely continue unless there is a clear improvement in economic data or consumer spending.
