Equity Markets Fall in Early Trade After Six-Day Rally
Indian benchmark indices Sensex and Nifty declined in early trade on Tuesday, snapping a six-day winning streak as investors booked profits amid weak global cues.
Key Market Movements
- Sensex: Fell 292.95 points to 84,658
- Nifty: Dropped 83.3 points to 25,930.15
- Major laggards: Tata Steel, Bajaj Finance, Bajaj Finserv, Tech Mahindra, Kotak Mahindra Bank, Larsen & Toubro
- Gainers: Bharat Electronics, Bharti Airtel, Axis Bank, Adani Ports
Global Market Impact
Asian markets including South Korea’s Kospi, Japan’s Nikkei 225, Shanghai Composite, and Hong Kong’s Hang Seng traded sharply lower. US markets had also ended in negative territory on Monday.
“Tuesday may bring pockets of volatility due to weekly F&O expiry and soft global cues, yet the broader tone stays constructive, buoyed by political stability, cooling inflation, soft crude, trade-deal optimism and FII buying,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Trade Deal Progress
The first phase of the proposed India-US bilateral trade agreement is “nearing closure” and would address the 50% tariffs imposed by the Trump administration on Indian goods, according to a government official. The US had imposed these tariffs in response to India buying Russian crude oil.
Investment Activity
Foreign Institutional Investors (FIIs) bought equities worth Rs 442.17 crore on Monday, while Domestic Institutional Investors (DIIs) purchased stocks worth Rs 1,465.86 crore.
Brent crude, the global oil benchmark, dipped 0.47% to USD 63.90 per barrel.
Previous Session Performance
On Monday, the Sensex had climbed 388.17 points (0.46%) to close at 84,950.95, while the Nifty gained 103.40 points (0.40%) to settle at 26,013.45, marking the sixth consecutive day of gains.
