Benchmark stock market indices closed lower on Tuesday as investors booked profit after the recent rally on Dalal Street. IT and metal stocks were the major laggards.
The S&P BSE Sensex lost 324.96 points to close at 84,625.99, while the NSE Nifty50 lost 103.40 points to end at 25,910.05.
Vinod Nair, Head of Research, Geojit Investments Limited, said that the domestic equity market edged lower as investors booked profits after the recent rebound, mirroring weak global sentiment.
“Expectations of a US Fed rate cut in December have diminished, weighing on sentiment, with IT, metal, and realty stocks declining amid a stronger dollar, while private banks offered some support. Investors now await this week’s U.S. jobs data, which will be key in shaping the Fed’s policy outlook,” he added.
Bharat Petroleum Corporation Ltd, Axis Bank, Asian Paints, Titan and Power Grid were the top gainers on the Sensex after the closing bell on Thursday, even as a section of the market slipped into the red. BPCL led the rally with a gain of 1.78%, followed by Axis Bank rising 1.27%. Asian Paints climbed 0.64%, Titan added 0.37% and Power Grid moved up 0.32%.
Tech Mahindra was the biggest loser with a fall of 2.23%, followed by Infosys which slipped 1.46%. Bajaj Finance declined 1.26%, while Bajaj Finserv fell 1.25%. Eternal also dropped 1.15%, adding to the late-session pressure.
“Going forward, progress on the Indo-U.S. trade deal and a strengthening domestic earnings outlook could help revive confidence and support market momentum to convincingly cross the Nifty50 threshold of 26,000,” said Nair.
“Participants should continue to prioritise stock selection based on relative strength across sectors, with a preference for large-cap and stronger mid-cap names, while maintaining a measured approach amid the prevailing choppiness,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
