Benchmark stock market indices slipped sharply during the afternoon trading session Tuesday, with the Sensex falling over 500 points. This happened as investors remained cautious amid a lack of fresh domestic cues and global uncertainty around US fiscal stability.
At around 1 pm, the Sensex was down 562 points at 81,497, while the Nifty 50 slipped nearly 160 points to 24,789.
KEY TRIGGERS MISSING
Markets have now traded in a narrow range for three consecutive sessions, with investors appearing to take a breather after a record-breaking rally earlier this month.
A potential India-US trade deal, hinted at by President Trump last week, is being seen as the next big trigger. However, with no official announcement in sight, market participants are hesitant to take fresh positions.
“The market is waiting for the next major trigger. It could be an India-US trade deal,” said Dharmesh Kant, Head of Equity Research at Cholamandalam Securities, told Reuters. “It needs to be seen when it is announced.”
Selling pressure was visible across most sectors. It is worth noting that all the major sectoral indices were in the red.
There were just a handful of gainers on the 3-share Sensex, including Tata Steel, Infosys, IndusInd Bank, ITC and Axis Bank. Eternal was the top losers, down nearly 4%. Maruti Suzuki, Bajaj Finserv, Power Grid Corporation and HDFC Bank were among the top drags.
Broader market indices, including most small-cap and mid-cap stocks, also fell during the session, indicating profit booking and volatility.
Among individual stocks, Pfizer India surged 12% after posting an 85% jump in fourth-quarter profits, aided by a one-time gain from a property sale. Real estate major DLF also rose as much as 5% on robust demand in its luxury segment, lifting quarterly profits.
CAUTIOUS SENTIMENTS
Despite positive pockets, sentiment remained cautious. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said the market is likely to enter a consolidation phase. “High valuations will put a cap on the upside, with institutional selling emerging on rallies,” he said.
Both foreign and domestic institutional investors were net sellers in Monday’s session. While Vijayakumar believes market dips will attract buying interest, especially from mutual funds flush with cash, he warned of growing global jitters.
“The downgrade of the US credit rating may not pose a near-term threat, but it has introduced an element of disquiet. Investors should adopt a cautious approach—selling on rallies and buying into dips,” he added.
With global signals mixed and no immediate domestic catalyst, traders appear to be hitting pause, at least for now.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
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