Bearishness arrived on Tuesday in the Indian stocks market. Bull run, four-session, came to an end. Profit booking was Witnessed on behalf of weak cues given from across the seas and general nervosity ahead of the start of the season's quarterly results. BSE Sensex fell by 153 points, or 0.19%, to 82,412. NSE Nifty 50 went down by 62 points or 0.25% to 25,046.
Volatility marked the session's start, with indices moving between gains and losses all day long. Apart from the profit booking in sectors with heavy weights such as auto, banking, and realty, there was a general trend of lower dragging of the benchmarks. IT and consumer durables stocks, however, supported the market to some extent, thus restricting the fall.
Within the Sensex group, Tata Motors, Axis Bank, and ICICI Bank were the top losers, whose share prices fell up to 2.5%. On the contrary, Tech Mahindra, HCLTech, and TCS gathered over 1% each as a result of the global technology sector's renewed optimism. In line with the robo-news from the sector, IT stocks gave the market a run for its money, supported by a derivate rupee and expectations of good Q4 results from Indian software exporters - said by analysts.
Wider market performance was a combination of pluses and minus. Nifty Midcup 100 declined by 0.4%, and the Nifty Smallcup 100 closed flat after shedding value earlier. Sectorally, the Nifty IT increased by 1.5%, whereas the Nifty Auto, Nifty Bank, and the Nifty Realty dropped between 0.6% and 1%.
Market sentiment was taken by surprise by the following: Firstly, bearish cues from Asian markets. Secondly, concerns about elevated U.S. ten-year Treasury yields, which saw riskier assets, such as stocks, get sold off. Other than that, the traders chose the time when profits could be reaped after the surge that saw the benchmarks scale new peaks.
Market pundits on the market opine that the market will be sideways short term, as there is waiting up in the case of Q2 earnings release in the information technology sector as well as the RBI policy release. “The market is resting after a tough run. Decline till the level of 24,900–24,950 on Nifty can turn out as a purchase area for the long-term buyer,” said one analyst.
Next, worldwide events, the prices of crude oil, and FII/DII inflows will still be the factors that influence market mood. From the technical perspective, the tank is expected to meet resistance of around 25,200 in the short term, while the support level of about 24,900 is quite strong.
On the contrary to the decline on Tuesday, the mood among the analysts is still positive for the medium-term trend, which is also supported by sound domestic fundamentals, good GDP growth, and vibrant corporate earnings.
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