Profit-booking led to a market downturn on Tuesday, following Monday's record surge. The Sensex fell by 850 points, and the Nifty by 250 points. Shares of Tata and Infosys declined.
Stock Market Today: The Indian stock market witnessed a record surge on Monday. The Sensex jumped approximately 2975 points, and the Nifty soared by 916 points. This was considered the largest intra-day rally since 2021. However, this momentum stalled on Tuesday, with a sharp decline observed in early trading.
Sensex and Nifty Plunge in Early Trading
On Tuesday, the BSE Sensex opened slightly higher than its previous close of 82,429, but a downturn began within minutes. Within just 15 minutes, the Sensex had fallen 850 points, or 0.95%, reaching 81,483.
Similarly, the NSE Nifty opened at 24,864, compared to its previous close of 24,924.70, but soon slipped by 250 points to 24,675.
Primary Reasons for the Decline
Several factors contributed to this decline. According to market analysts, profit-booking following Monday's sharp rally put pressure on the market. Furthermore, weakness in global markets, selling by Foreign Institutional Investors (FIIs), and uncertainty surrounding domestic economic indicators also impacted the market.
Decline in Large-Cap Stocks
Amidst Tuesday's market downturn, several large-cap company stocks experienced significant pressure. Stocks like Tata Steel, Infosys, and TCS traded lower in the early hours.
Infosys: 2% decline
TCS: 1.30% decline
Tata Steel: 1.10% decline
Eternal: 2% decline
Mid-cap and small-cap companies also felt the impact of the decline.
UPL: 4% decline
Paytm: 2.90% decline
FirstCry: 1.80% decline
Gensol: 4.99% decline
KFintech: 4.90% decline
Aether: 4.56% decline
Reasons for Monday's Significant Surge
Monday's sharp rise in the Indian stock market was attributed to positive news regarding a ceasefire between India and Pakistan. This boosted investor sentiment, leading to significant buying activity.
The Sensex closed at 82,429.90, up 2975 points, while the Nifty closed at 24,924.70, up 916.70 points. This surge was considered the largest intra-day rally since 2021.
